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HAVEN Act May Be Employed to Reduce Payments Under a Confirmed Chapter 13 Plan

In August, Congress adopted the so-called HAVEN Act, which allows military veterans to exclude disability benefits from the calculation of “current monthly income.” In practical terms, the new law means that veterans will no longer be compelled to pay a portion of their disability benefits to creditors under chapter 13 plans. Chief Bankruptcy Judge Phillip J. Shefferly of Detroit decided on March 10 that the HAVEN Act allows veterans to modify confirmed chapter 13 plans by reducing payments to creditors.

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