Schakowsky Unveils Bill to Help Financially Strapped Reservists and National Guard Members

SCHAKOWSKY UNVEILS BILL TO HELP FINANCIALLY STRAPPED
RESERVISTS AND NATIONAL GUARD MEMBERS

Washington, D.C.–U.S. Representative Jan Schakowsky (D-IL), a member of the House Intelligence Committee, introduced H.R. 3972, which would provide relief to financially strapped reservists and national guard members. The bipartisan bill, which currently has 27 original cosponsors, would provide civilian soldiers with special exemptions from some of the new bankruptcy law provisions.

"Too many of our members of the National Guard and Reserves, many having been deployed to Iraq and Afghanistan multiple times, are facing financial hardship back home," said U.S. Representative Jan Schakowsky. "Many of these citizen soldiers are pulled away from their families and jobs at a moment's notice and are unable to anticipate the financial difficulties they might face while they are serving our country. My bill would help alleviate that burden by allowing members of the National Guard and Reservists to file for Chapter 7 bankruptcy under the old, more flexible rules....

On October 17, 2005, the Bankruptcy Abuse Prevention and Consumer Act became law, putting new restrictions on the dismissal of debt through Chapter 7 filings. The new law has made it more difficult for members of the National Guard and Reservists to file for Chapter 7 bankruptcy. H.R. 3972 eliminates the means testing under the new law for Reservists and National Guard members called up for more than 60 days of service in the wars in Afghanistan and Iraq, allowing them to file for Chapter 7 bankruptcy under the old rules. The bill is only applicable for 2 years after their service has ended.