PUBLIC LAW 110–438—OCT. 20, 2008 

NATIONAL GUARD AND RESERVISTS DEBT 

RELIEF ACT OF 2008 


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122 STAT. 5000 PUBLIC LAW 110–438—OCT. 20, 2008 

Public Law 110–438 

110th Congress 

An Act 

A bill to amend title 11, United States Code, to exempt for a limited period, 

from the application of the means-test presumption of abuse under chapter 7, 

qualifying members of reserve components of the Armed Forces and members 

of the National Guard who, after September 11, 2001, are called to active duty 

or to perform a homeland defense activity for not less than 90 days. 

Be it enacted by the Senate and House of Representatives of 

the United States of America in Congress assembled, 

SECTION 1. SHORT TITLE. 

This Act may be cited as the ‘‘National Guard and Reservists 

Debt Relief Act of 2008’’. 

SEC. 2. AMENDMENTS. 

Section 707(b)(2)(D) of title 11, United States Code, is 

amended— 

(1) in clauses (i) and (ii)— 

(A) by indenting the left margin of such clauses 2 

ems to the right, and 

(B) by redesignating such clauses as subclauses (I) 

and (II), respectively, 

(2) by striking ‘‘testing, if the debtor is a disabled veteran’’ 

and inserting the following: 

‘‘testing— 

‘‘(i) if the debtor is a disabled veteran’’, 

(3) by striking the period at the end and inserting ‘‘; or’’, 

and 

(4) by adding at the end the following: 

‘‘(ii) with respect to the debtor, while the debtor is— 

‘‘(I) on, and during the 540-day period beginning immediately after the debtor is released from, a period of active 

duty (as defined in section 101(d)(1) of title 10) of not 

less than 90 days; or 

‘‘(II) performing, and during the 540-day period beginning immediately after the debtor is no longer performing, 

a homeland defense activity (as defined in section 901(1) 

of title 32) performed for a period of not less than 90 

days; 

if after September 11, 2001, the debtor while a member of 

a reserve component of the Armed Forces or a member of 

the National Guard, was called to such active duty or performed 

such homeland defense activity.’’. 

SEC. 3. GAO STUDY. 

(a) COMPTROLLER GENERAL STUDY.—Not later than 2 years 

after the effective date of this Act, the Comptroller General shall 

Deadline. 

11 USC 101 note. 

National Guard 

and Reservists 

Debt Relief Act 

of 2008. 

Bankruptcy. 

Oct. 20, 2008 

[S. 3197] 


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PUBLIC LAW 110–438—OCT. 20, 2008 122 STAT. 5001 

complete and transmit to the Speaker of the House of Representatives and the President pro tempore of the Senate, a study of 

the use and the effects of the provisions of law amended (and 

as amended) by this Act. Such study shall address, at a minimum— 

(1) whether and to what degree members of reserve components of the Armed Forces and members of the National Guard 

avail themselves of the benefits of such provisions, 

(2) whether and to what degree such members are debtors 

in cases under title 11 of the United States Code that are 

substantially related to service that qualifies such members 

for the benefits of such provisions, 

(3) whether and to what degree such members are debtors 

in cases under such title that are materially related to such 

service, and 

(4) the effects that the use by such members of section 

707(b)(2)(D) of such title, as amended by this Act, has on 

the bankruptcy system, creditors, and the debt-incurrence practices of such members. 

(b) FACTORS.—For purposes of subsection (a)— 

(1) a case shall be considered to be substantially related 

to the service of a member of a reserve component of the 

Armed Forces or a member of the National Guard that qualifies 

such member for the benefits of the provisions of law amended 

(and as amended) by this Act if more than 33 percent of 

the aggregate amount of the debts in such case is incurred 

as a direct or indirect result of such service, 

(2) a case shall be considered to be materially related 

to the service of a member of a reserve component of the 

Armed Forces or a member of the National Guard that qualifies 

such member for the benefits of such provisions if more than 

10 percent of the aggregate amount of the debts in such case 

is incurred as a direct or indirect result of such service, and 

(3) the term ‘‘effects’’ means— 

(A) with respect to the bankruptcy system and creditors— 

(i) the number of cases under title 11 of the United 

States Code in which members of reserve components 

of the Armed Forces and members of the National 

Guard avail themselves of the benefits of such provisions, 

(ii) the aggregate amount of debt in such cases, 

(iii) the aggregate amount of debt of such members 

discharged in cases under chapter 7 of such title, 

(iv) the aggregate amount of debt of such members 

in cases under chapter 7 of such title as of the time 

such cases are converted to cases under chapter 13 

of such title, 

(v) the amount of resources expended by the bankruptcy courts and by the bankruptcy trustees, stated 

separately, in cases under title 11 of the United States 

Code in which such members avail themselves of the 

benefits of such provisions, and 

(vi) whether and to what extent there is any indicia 

of abuse or potential abuse of such provisions, and 

(B) with respect to debt-incurrence practices— 


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122 STAT. 5002 PUBLIC LAW 110–438—OCT. 20, 2008 

LEGISLATIVE HISTORY—S. 3197 (H.R. 4044): 

HOUSE REPORTS: No. 110–726 accompanying H.R. 4044 (Comm. on the Judiciary). 

CONGRESSIONAL RECORD, Vol. 154 (2008): 

Sept. 30, considered and passed Senate. 

Oct. 2, 3, considered and passed House. 

Æ 

(i) any increase in the average levels of debt 

incurred by such members before, during, or after such 

service, 

(ii) any indicia of changes in debt-incurrence practices adopted by such members in anticipation of benefitting from such provisions in any potential case under 

such title; and 

(iii) any indicia of abuse or potential abuse of 

such provisions reflected in the debt-incurrence of such 

members. 

SEC. 4. EFFECTIVE DATE; APPLICATION OF AMENDMENTS. 

(a) EFFECTIVE DATE.—Except as provided in subsection (b), 

this Act and the amendments made by this Act shall take effect 

60 days after the date of enactment of this Act. 

(b) APPLICATION OF AMENDMENTS.—The amendments made by 

this Act shall apply only with respect to cases commenced under 

title 11 of the United States Code in the 3-year period beginning 

on the effective date of this Act. 

Approved October 20, 2008. 

11 USC 707 note. 


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