New Bankruptcy Protection for Members of the Reserve & National Guard
Thursday, December 18, 2008
- Organization: Pennsylvania Legal Aid Network, Inc.
On October 20, 2008, the President signed the National Guard and Reservists Debt Relief Act of 2008, Pub.L. 110-438, which provides a temporary exclusion for Reservists and members of the National Guard from means testing in Chapter 7 bankruptcy cases which are commenced in the three year period beginning December 19, 2008.
The "means test" requires that any individual contemplating filing Chapter 7, first demonstrate that the total family income for the last six months is at or below the "median income" for a family of like size. If the individual or family income is above the "medium income" there is a presumption that it would be "an abuse" of the bankruptcy laws if that individual or family filed for bankruptcy relief under Chapter 7.
The Judicial Conference has approved an amendment to Official Form 22A which includes a new Part 1C where qualifying debtors can invoke the temporary exclusion from the means test.
Notice from U.S. Bankruptcy Court for the Eastern District of Pennsylvania
