Democratic Senator Tammy Baldwin from Wisconsin and Republican Senator John Cornyn from Texas see the number of U.S. military service veterans in dire financial straits as a problem that needs immediate fixing, regardless of party loyalty. Together, they have recently introduced the bipartisan Honoring American Veterans in Extreme Need Act, or the HAVEN Act. It has been tentatively described as a way to “protect the economic security […] of veterans and their families who rely on disability benefits and may be experiencing financial hardship.”
How the HAVEN Act Affects Bankruptcy for Veterans
The more tangible purpose of the HAVEN Act is to adjust how bankruptcy law views and calculates disability benefits provided by either the Department of Veterans Affairs or the Department of Defense. Currently, benefits of these sorts are actually counted as disposable income, despite being very much necessary for the brave men and women receiving them. Social Security Income is not counted as disposable income in the bankruptcy means test. Including VA and DoD benefits as disposable income in a bankruptcy filing means creditors may get paid a portion or all of those benefits.
The HAVEN Act, if approved and signed, would make it so veterans’ disability benefits are no longer calculated as disposable income during a bankruptcy filing. As a result, more veterans would be able to hold onto more – if not all – of their hard-earned disability benefits when filing for bankruptcy.
Support for the HAVEN Act
A number of noteworthy organizations have already pledged their support to the HAVEN Act, including the Veterans of Foreign Wars, the Wounded Warrior Project, the Society of Military Widows, and more. Joining Senators Baldwin and Cornyn are also many other Senators, red and blue alike, such as Democrat Dianne Feinstein from California and Republican Tom Cotton from Arkansas.
Here at the Law Offices of Mark L. Miller, we proudly support all of our military and the HAVEN Act. We thank all of our military veterans and active duty service members who are courageous enough to protect our great country. It seems only fitting that we all give back however we can, including creating better bankruptcy laws to support them in their times of need.
To learn more about our San Diego bankruptcy law firm, or to request a FREE consultation about your own bankruptcy situation and how we can help, call (619) 494-3821.