National Guard and Reservists Debt Relief Act of 2008
Latest Action
Became Public Law No: 110-438.
Official Summary
(This measure has not been amended since it was reported to the Senate on September 15, 2008. The summary of that version is repeated here.) National Guard and Reservists Debt Relief Act of 2008 - (Sec. 2) Amends federal bankruptcy law to prohibit the bankruptcy court from dismissing or converting a chapter 7 liquidation case based upon means testing if the debtor, after September 11, 2001, was called to active duty or homeland defense activity while a member of a reserve component of the Armed Forces or a member of the National Guard, and such debtor is: (1) on active duty for a specified period; or (2) performing a homeland defense activity for a specified period. (Sec. 3) Directs the Comptroller General to study and report to Congress on whether and to what degree members of reserve components of the Armed Forces and the National Guard: (1) avail themselves of the benefits of this Act; (2) are debtors in federal bankruptcy cases substantially related to service that qualifies them for such benefits ; and (3) are debtors in federal bankruptcy cases materially related to such service. Requires such study to include the effects that the use of this Act by such members has upon: (1) the bankruptcy system; (2) creditors; and (3) the debt-incurrence practices of such members. Prescribes mandatory factors for consideration in such report.
GovScope Watchdog™
AI Government Intelligence™The National Guard and Reservists Debt Relief Act of 2008 amends federal bankruptcy law to protect certain members of the National Guard and reserve components from dismissal or conversion of Chapter 7 bankruptcy cases based on means testing if they were called to active duty or homeland defense after September 11, 2001. It also mandates a study by the Comptroller General to assess the use and impact of these protections on debtors, creditors, and the bankruptcy system. The bill became law on October 20, 2008.
This law provides bankruptcy protections for National Guard members and reservists called to active duty, aiming to address financial challenges related to their service.
- Prohibits bankruptcy courts from dismissing or converting Chapter 7 cases based on means testing for eligible National Guard and reservists on active duty or homeland defense duty after 9/11/2001.
- Requires the Comptroller General to study and report on the use and effects of these bankruptcy protections on service members, creditors, and the bankruptcy system.
- The study must consider factors such as the extent of benefit usage, relation of bankruptcy cases to military service, and impacts on debt-incurrence practices.
Members of the National Guard and reserve components of the Armed Forces who were called to active duty or homeland defense after September 11, 2001, may benefit from protections in bankruptcy proceedings. Creditors and the bankruptcy system are also subjects of study to understand the law's impact.
The bill does not provide detailed information on implementation mechanisms or potential costs associated with the mandated study. The effects on creditors and the bankruptcy system could involve tradeoffs between debtor protections and creditor rights. The absence of the full bill text limits assessment of detailed provisions.
The bill was introduced in the Senate during the 110th Congress, falls under the Finance and Financial Sector policy area, and has passed into law as Public Law No: 110-438. The legislative focus reflects post-9/11 considerations for military service members' financial protections.
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The protections for National Guard and reservists in bankruptcy cases may influence debtor behavior and creditor recovery processes. The mandated study could inform future legislative or policy adjustments based on observed impacts.
The full bill text is not provided, limiting detailed analysis of specific provisions. The mandated Comptroller General study is a key implementation element that may affect future oversight and policy. Citizens may want to review the study outcomes to understand the law's practical effects on military service members and the bankruptcy system.
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