On August 23rd, 2019, President Donald Trump signed the Honoring American Veterans in Extreme Need (HAVEN) Act. Under the HAVEN act, veterans who receive disability compensation will no longer have to worry about debt collectors seizing their funds if they have to file for bankruptcy.
The new act gives veterans the same protections afforded to people who receive Social Security disability payments. When collectors attempt to recover a debt, they are not allowed to count Social Security disability benefits as part of a person’s disposable income, which can be seized during the bankruptcy process.
The HAVEN Act removes VA disability income from being pledged as income in a bankruptcy case and also removes that income from being counted for the Means Test. The bill successfully passed by voice vote in both legislative bodies and was applauded by most veterans groups.
In addition to the HAVEN Act, President Trump also signed an extension of the National Guard and Reservists Debt Relief Act. This act also provides protection during bankruptcy proceedings for those who have served in the military for at least 90 days on active duty.
One major benefit of the extension is that members of the National Guard and Reserves won’t be placed into a higher pay bracket if they file for bankruptcy. This often happens because some earn more money serving on active duty than they make at civilian jobs.
The HAVEN Act and extension of the National Guard and Reservists Debt Relief Act will extend veteran protections for four years.
Are you a veteran who is considering filing for bankruptcy? If so, contact our dedicated team of bankruptcy lawyers at Haven Law Group P.C. We can answer all of your questions and can guide you through the entire legal process. Call (757) 209-2167 to set up your free consultation!