National Guard and Reservists Debt Relief Extension Act of 2023
Dec 19, 2023
Dec 19, 2023
Summary
Extends for four more years a rule that helps certain National Guard and reserve members file for bankruptcy without having to prove they can't pay.
What problem does this solve?
A special rule helping National Guard and reserve members with debt was about to end, which could make it harder for them to get financial help. This law extends the special rule for another four years, making sure these service members continue to have easier access to debt relief.
What does this law do?
Extends bankruptcy protection for four years
Changes the time limit of the National Guard and Reservists Debt Relief Act of 2008 from a 15-year period to a 19-year period, extending the protections for four more years.
Who does this affect?
- Members of the National Guard
- Members of reserve components of the Armed Forces
What is the real world impact?
•
Provides continued financial stability for service members
Ensures that National Guard and reserve members called to active duty do not face additional hurdles when seeking bankruptcy protection, recognizing the financial strain that deployment can cause.
•
Offers a temporary solution, not a permanent one
Extends the relief for only four years, meaning Congress will need to address the issue again in the future rather than making the protection permanent.
When does this start?
This law becomes effective on December 19, 2023.