Congress passed a bill that would extend a lifeline to financially struggling injured veterans, enabling them to spend disability payments instead of using them to pay down debt in bankruptcy protection, WSJ Pro Bankruptcy reported. The Senate yesterday passed four bankruptcy bills that included the Honoring American Veterans in Extreme Need Act (HAVEN Act) that consumer advocates say fixes a mistake written into a 2005 overhaul of the country’s bankruptcy rules. The House passed the bill last week. It now goes to the White House for President Trump’s signature where he is expected to sign the bill. The newly passed bill excludes disability payments from the Department of Veterans Affairs and Department of Defense to veterans or their dependent survivors from the classification of disposable income. The bill would provide relief for military veterans, who face higher rates of homelessness, mental-health problems and unaffordable debt, including from medical expenses for combat-related injuries. A 2017 study from Stanford University found that veterans make up a larger portion of people who have filed for bankruptcy protection. Read more.
The Senate yesterday also passed H.R. 3311, the Small Business Reorganization Act; H.R. 2336, the Family Farmer Relief Act; and H.R. 3304, the National Guard and Reservist Debt Relief Extension Act. ABI testified in support of the HAVEN Act (H.R. 2938), H.R. 3311 and H.R. 2336. All the bills passed the U.S. House of Representatives last week and are non-controversial. The bills received unanimous consent to proceed to passage. The legislation will now be sent to President Trump to be signed into law. Click here to read ABI’s press release.
