Memphis Standard

WASHINGTON – Congressman Steve Cohen (TN-9) today introduced the National Guard and Reservist Debt Relief Extension Act, a measure that continues the exemption from the means test under Chapter 7 of the bankruptcy code for national guard members and reservists, continuing the parity with active duty servicemembers.

Congressman Cohen made the following statement:

“Members of the armed services who have honorably served our country deserve a presumption that their bankruptcy filings are legitimate. Too many of our servicemembers fall on hard times, often targeted by unscrupulous pay-day lenders near camps and bases. We can safely assume that their financial problems are real and should be lawfully discharged in bankruptcy.”

This provision was first enacted in 2008. In 2015, under Congressman Cohen’s leadership, Congress extended this exception for a period of four years, by a vote of 419-0 in the House and unanimous consent in the Senate.  Congressman Cohen also led the 2019 extension of this provision.  That extension was approved by the House of Representatives with a roll call vote of 417-1 and by voice vote without amendment in the Senate.  

Original source can be found here.