National Guard and Reservists Debt Relief Extension Act of 2023
Floor Speech
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Mr. MORAN. Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 3315) to exempt for an additional 4-year period, from the application of the means-test presumption of abuse under chapter 7, qualifying members of reserve components of the Armed Forces and members of the National Guard who, after September 11, 2001, are called to active duty or to perform a homeland defense activity for not less than 90 days.
The Clerk read the title of the bill.
The text of the bill is as follows: H.R. 3315
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE.
This Act may be cited as the ``National Guard and Reservists Debt Relief Extension Act of 2023''. SEC. 2. NATIONAL GUARD AND RESERVISTS DEBT RELIEF AMENDMENT.
Section 4(b) of the National Guard and Reservists Debt Relief Act of 2008 (Public Law 110-438; 122 Stat. 5000) is amended by striking ``15-year'' and inserting ``19-year''.
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Mr. MORAN. 3315.
Mr. Speaker, I rise in support of H.R. 3315, the National Guard and Reservists Debt Relief Extension Act of 2023.
The bill before us today is an important piece of legislation. It will help National Guard members and Armed Services reservists who serve our country.
Some of these individuals face financial hardships during or after Active Duty. Bankruptcy may be needed to resolve these hardships.
In 2008, Congress recognized that guardsmen and reservists sometimes confront unique financial challenges when returning home from Active Duty.
Congress enacted the National Guard and Reservists Debt Relief Act in 2008 to respond to these challenges and has extended its protection several times since. Those protections are set to expire later this month.
Under current law, certain guardsmen and reservists are exempt from the Bankruptcy Code's means test. This test helps decide whether a debtor is eligible for debt forgiveness under chapter 7 of the Bankruptcy Code.
The test looks at recent income and expense data to gauge a consumer's ability to repay their debt, but the means test can be an obstacle to debt forgiveness for guardsmen and reservists. Their income and expenses can change dramatically when transitioning from civilian life to Active Duty and back.
The means test does not account for these changes in income and expenses due to Active-Duty service.
The National Guard and Reservists Debt Relief Extension Act of 2023 responds to this concern. This bill would extend for an additional 4 years the existing means test exemption for certain qualifying National Guard members and Armed Services reservists.
We continue to call on our guardsmen and our reservists to put their careers on hold to serve our country. We should ensure that those military personnel who fall on hard times are not denied access to bankruptcy because of their Active-Duty status.
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Mr. MORAN. Mr. Speaker, I am prepared to close, and I reserve the balance of my time.
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Mr. MORAN. Mr. Speaker, to close, I reemphasize what Mr. Cohen from Tennessee said.
This is a bipartisan and bicameral effort to protect our guardsmen and our reservists as they are returning back after having served in Active Duty. This is an important measure to protect those individuals who have fallen on hard times financially and need the protections of bankruptcy court.
This exemption to the means test is important because of the variations of the income and the expenses that we see coming in and out of civilian life for these individuals.
As a result of the efforts of both the Democrats and the Republicans in the House and the Senate, I urge my colleagues to support this resolution, and I yield back the balance of my time.
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