# National Guard and Reservists Debt Relief Extension Act of 2023

This bill extends a special bankruptcy protection that helps National Guard members and military reservists who've been called to active duty. Here's what it means in practical terms: when someone files for bankruptcy, courts typically use a "means test" to decide if they're abusing the system—basically checking if they have enough income to pay back at least some of their debts. If they do, the court can reject their bankruptcy case. This bill gives National Guard members and reservists extra time before that means test applies to them.

Specifically, the bill extends the protection period from 15 years to 19 years after someone is called to active duty. So if a National Guard member or reservist is activated for at least 90 days and later faces serious financial trouble, they get four additional years where they can file for bankruptcy without the court automatically assuming they're trying to cheat the system. This matters because military service can disrupt careers and finances—someone might struggle to find work after deployment or face unexpected expenses related to their service. The extra years give them breathing room to get back on their feet before facing the stricter bankruptcy rules.

The protection only applies to people who were called to active duty or homeland defense activities after September 11, 2001, and served for at least 90 consecutive days. It's a recognition that military service, especially for part-time soldiers and guardsmen, can create genuine financial hardship that shouldn't be treated the same way as other bankruptcy cases.

National Guard and Reservists Debt Relief Extension Act of 2023

Cohen, Steve

National Guard and Reservists Debt Relief Extension Act of 2023 This bill extends for an additional four years the exemption from the presumption of abuse means test under Chapter 7 (liquidation) bankruptcy for qualifying members of an Armed Forces reserve component or the National Guard. Specifically, members who, after September 11, 2001, are called to active duty or to perform a homeland defense activity for not less than 90 days qualify for this exemption. Currently, the exemption expires on December 19, 2023.