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.
While no doubt can exist that the HAVEN Act applies to bankruptcy cases initiated after it became law, questions have arisen concerning whether the HAVEN Act should apply to bankruptcy cases that were filed before enactment, according to an article in the December 2019 ABI Journal.
An article in the November 2019 ABI Journal looks at how the HAVEN Act amended § 101(10A) of the Bankruptcy Code — defining “current monthly income” (CMI) — by entirely striking and replacing subparagraph (B). The new subparagraph (B) contains the prior’s text, expressing what CMI “includes” and “excludes,” and divides that text into clauses and subclauses.
A team of bankruptcy lawyers recently came together from across the country to help tweak the U.S. Bankruptcy Code and protect an important stream of benefits for millions of veterans, Law360 reported.
President Donald Trump signed into law several bankruptcy law changes on Aug. 23, 2019: the Family Farmer Relief Act (Pub. L. 116-51), the Honoring American Veterans in Extreme Need (HAVEN) Act (Pub. L. 116-52) and the Small Business Reorganization Act (Pub. L. 116-54). Each law is bipartisan and bicameral, a rare event on Capitol Hill in 2019. Collectively, the legislative package represents the most significant amendment to bankruptcy law since 2005.
Read the full October 2019 ABI Journal article.
President Donald Trump recently signed into law the Honoring American Veterans in Extreme Need Act, which was introduced by Rep. Lucy McBath (Ga. 6), NorthFulton.com reported.
A new federal law— the Honoring American Veterans in Extreme Need Act of 2019 or the HAVEN Act— aims to address the latter hardship, providing disabled military veterans with greater protections in bankruptcy proceedings, according to a commentary in the National Law Review.
President Donald Trump on Aug. 23, 2019, signed the Honoring American Veterans in Extreme Need Act of 2019 (HAVEN Act) into law. The HAVEN Act was introduced in the U.S. House of Representatives by Lucy McBath (D-Ga.) and Greg Steube (R-Fla.) to exclude disability benefits paid by the U.S. Department of Veterans Affairs and the U.S. Department of Defense from the calculation of an individual debtor's disposable income used for bankruptcy means testing, according to a commentary on JDSupra.com.
President Donald J. Trump today signed the “Honoring American Veterans in Extreme Need Act of 2019” (HAVEN Act; H.R. 2938) into law, according to an ABI press release. The bipartisan legislation, which ABI testified in support of in June, passed the House in late July and the Senate on August 1.
President Donald Trump signed legislation on Friday that prevents debt collectors from seizing veterans' disability compensation if they declare bankruptcy, the Military Times reported.
President Trump signed an executive order today that will make it easier for disabled veterans to receive student loan forgiveness, according to Forbes.com.
The U.S. Senate today passed the Small Business Reorganization Act of 2019 (H.R. 3311), HAVEN Act (H.R. 2938) and Family Farmer Relief Act of 2019 (H.R. 2336) by a voice vote, according to an ABI press release. ABI testified in support of the three bills.
Three bills that aim to ease the bankruptcy process for small businesses, veterans, and farmers cleared the Senate on August 1 by voice vote. (Subscription required.)
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, the Wall Street Journal reported. (Subscription required.)
The U.S. House of Representatives today passed the Small Business Reorganization Act of 2019 (H.R. 3311) and the HAVEN Act (H.R. 2938) by a voice vote, according to an ABI press release. ABI testified in support of both bills.
An article in the July ABI Journal highlights the need for Congress to remove the disparity of veterans’ disability compensation being included in the disposable-income calculation of chapter 13 bankruptcy, while Social Security disability income is exempted.
Federal lawmakers say injured veterans who file for bankruptcy shouldn’t be forced to use their disability payments to pay off credit-card companies and other lenders. (Subscription required).
The Honoring American Veterans in Extreme Need (HAVEN) Act was introduced on March 6 seeking to create parity in bankruptcy cases for benefits provided by the VA and Department of Defense to disabled veterans and their surviving spouses, the Military Times reported.
When a person files for bankruptcy, it’s a sad day. Although the bankruptcy code was enacted to give a “fresh start to the honest but unfortunate debtor” and a single point of contact for creditors (and to keep our economy going), admitting that your debts are out of control is difficult. So why would Congress make it harder for disabled veterans who need bankruptcy protection?
Part of the mission of ABI's newly formed Task Force for Veterans and Servicemembers Affairs is to “remediate and prevent adverse debt concerns and impacts on veterans and servicemembers to ensure that we financially strengthen those that strengthen us with the respect and dignity they deserve.” To that end, the Task Force has focused much of its initial attention on the Bankruptcy Code’s perplexing and inequitable treatment of veterans’ benefits in consumer bankruptcy cases.
Read the full article by Jay Bender of Bradley Arant Boult Cummings LLP (Birmingham, Ala.) in the June 2017 Norton Bankruptcy Law Adviser.