More Veterans Now Qualify for Chapter 7 Bankruptcy
Under the HAVEN Act-military disability is not income in bankruptcy. Specifically, disability from the Veterans Affairs and the Department of Defense is excluded for bankruptcy filers. Most importantly, this income will not be in the bankruptcy means test. As a result, more veterans will be able to hold onto more – if not all – of their hard-earned military benefits when filing for bankruptcy.
Put simply, the “Honoring American Veterans in Extreme Need Act of 2019” known as the “HAVEN Act” changed bankruptcy law. Previously under chapter 7 and chapter 13 bankruptcy law inclusion of these funds was mandatory under the means test. Our brave military members were penalized for receiving disability payments. Many retired and disabled members of our military could not qualify for chapter 7 bankruptcy protection prior to the HAVEN Act. As a result, many of our service members had to pay a portion or all of those benefits to their creditors.
Bipartisan Government Support for HAVEN Act-Military Disability is not Income
The number of U.S. military service veterans in dire financial straits is a problem and needed an immediate solution. Democratic Senator Tammy Baldwin from Wisconsin and Republican Senator John Cornyn from Texas supported the HAVEN Act. Together, they introduced the bipartisan “Honoring American Veterans in Extreme Need Act”, or the HAVEN Act. The purpose of the HAVEN Act is to “protect the economic security […] of veterans and their families who rely on disability benefits and may be experiencing financial hardship.” Indeed, the purpose of the HAVEN Act is to help service members qualify for chapter 7 bankruptcy.
Passing the HAVEN Act was a bipartisan measure. Additionally, many notable organizations supported the bill. Among the supporters was the Veterans of Foreign Wars, the Wounded Warrior Project, the Society of Military Widows, and more.
Law Offices of Mark L. Miller Supports our Service Members
Here at the Law Offices of Mark L. Miller, we proudly support all of our service members. Whether you are active in the military or retired, we thank you for our service. You have made the ultimate sacrifice and your courage keeps our great country safe. We owe our freedom to our military. It is only fitting that we all give back to those who served our country. This includes creating better bankruptcy laws to support them in their time of need.
We also honor our military by offering a discount to all active and retired service members. Plus, our office provides a free consultation so call, text or email our San Diego Bankruptcy Attorney today to talk about your financial situation and how we can help.