# Presentation: 739557

**CM/ECF**

**National Guard **
**And Reservists **
**Debt Relief Act **
**2008**

## National Guard and Reservists Debt Relief Act of 2008

- October 20, 2008 	President signed the Debt 					Relief 	Act of 2008.
- December 19, 2008	Effective date of Relief Act
- Amends §707(b)(2)(D) of the Bankruptcy Code
- Only for chapter 7 individual consumer bankruptcy debtors.

**Notes:**
October 20, 2008 – President signed the National Guard and Reservists Debt Relief Act of 2008.

## National Guard and Reservists Debt Relief Act of 2008

- Provides temporary exclusion from chapter 7 bankruptcy means test for:
- National Guardsmen
- Reservists
- Who were called to _active duty or homeland defense_ activity after September 11, 2001
- for at least 90 days

**Notes:**
October 20, 2008 – President signed the National Guard and Reservists Debt Relief Act of 2008.

## National Guard and Reservists Debt Relief Act of 2008

- Temporary exclusion expires 540 days after the debtor is released from active duty or no longer performing homeland defense activities.
- The amendment applies only to cases commenced in the three-year period beginning on the effective date of the Act.

## National Guard and Reservists Debt Relief Act of 2008

- This exclusion could expire while a chapter 7 debtor’s case is pending and while a motion to dismiss the case may still be filed.
- Interim Rule – Requires the clerk give the debtor notice of the need to complete the means test and the debtor must do so no later than 14 days after the exclusion has expired.

## National Guard and Reservists Debt Relief Act of 2008

- Statement of Debtor’s Temporary Exclusion From Means Test event
- Can be used for single or joint debtor cases

## National Guard and Reservists Debt Relief Act of 2008

-  Docket new event -
-  Statement of Debtor’s Temporary Exclusion from Means Test

## National Guard and Reservists Debt Relief Act of 2008

- The event is appropriate for single or joint debtor cases. This slide shows both debtors filing this statement.

## National Guard and Reservists Debt Relief Act of 2008

- If both debtors are selected on this screen, the following process is repeated for each party so separate deadlines are created.

## National Guard and Reservists Debt Relief Act of 2008

- If both debtors have been selected, this query will be presented separately for each debtor. In the example above the debtor is still serving on active duty.

***National Guard and Reservists Debt Relief Act of 2008***

## National Guard and Reservists Debt Relief Act of 2008

- In our example, the joint debtor is no longer on active duty so we have selected “No” to this question.

## National Guard and Reservists Debt Relief Act of 2008

- For the joint debtor, the system is now requesting the date of release from active duty.

## National Guard and Reservists Debt Relief Act of 2008

- The system next calculates the exclusion deadline for the joint debtor which is the release date + 540 days.

## National Guard and Reservists Debt Relief Act of 2008

- Final docket text shows the release date and the date the temporary exclusion  expires for the joint debtor. The system automatically sets a deadline for the temporary exclusion.

## National Guard and Reservists Debt Relief Act of 2008

- If  a debtor is released from active duty later in the case
- attorney should docket the event “Release from Active Duty”

## National Guard and Reservists Debt Relief Act of 2008

- Official Form 22A is revised (December 1, 2008)
- New Part 1C added to Form 22A, Statement of Current Monthly Income and Means Test Calculation
- For National Guard or Reservists claiming exemption from the means test

## National Guard and Reservists Debt Relief Act of 2008

***National Guard and Reservists Debt Relief Act of 2008***

## National Guard and Reservists Debt Relief Act of 2008

***National Guard and Reservists Debt Relief Act of 2008***

-  	**Non-consumer Debtors. If your debts are not primarily consumer debts, check the box below and complete the verification in Part VIII. Do not complete any of the remaining parts of this statement. **
- 1B
**	****Declaration of non-consumer debts. By checking this box, I declare that my debts are not primarily consumer debts. ****	**
- 	**Reservists and National Guard Members; active duty or homeland defense activity. **Members of a reserve component of the Armed Forces and members of the National Guard who were called to active duty (as defined in 10 U.S.C. § 101(d)(1)) after September 11, 2001, for a period of at least 90 days, or who have performed homeland defense activity (as defined in 32 U.S.C. § 901(1)) for a period of at least 90 days, are excluded from all forms of means testing during the time of active duty or homeland defense activity and for 540 days thereafter (the “exclusion period”). If you qualify for this temporary exclusion, (1) check the appropriate boxes and complete any required information in the Declaration of Reservists and National Guard Members below, (2) check the box for “The presumption is temporarily inapplicable” at the top of this statement, and (3) complete the verification in Part VIII. During your exclusion period you are not required to complete the balance of this form, but you must complete the form no later than 14 days after the date on which your exclusion period ends, unless the time for filing a motion raising the means test presumption expires in your case before your exclusion period ends.
**1C ****	****	****Declaration of Reservists and National Guard Members. **By checking this box and making the appropriate entries below, I declare that I am eligible for a temporary exclusion from means testing because, as a member of a reserve component of the Armed Forces or the National Guard
**	**
**a.      I was called to active duty after September 11, 2001, for a period of at least 90 days and **
**                ****	**** ****I remain on active duty /or/ **
**	**** ****I was released from active duty on ________________, which is less than 540 days before this bankruptcy   case was filed:**
**	****OR**
**	**** ****b.      I am performing homeland defense activity for a period of at least 90 days /or/ **
**	****I performed homeland defense activity for a period of at least 90 days, terminating on _______________, which is less than 540 days before this bankruptcy case was filed. **

## National Guard and Reservists Debt Relief Act of 2008

**REVIEW**
- Open the case as usual.
**	**NOTE:**	**If the case is joint, and the exclusion applies to one debtor 		and the other debtor has the presumption of abuse, the 		case should be opened with the means YES.
- 2.	Docket a new event called 'Statement of Debtor's Temporary Exclusion from Means Test.‘
- If the debtor is released from active duty later in the case, the attorney should docket the event 'Release from Active Duty.'