```

[110th Congress Public Law 438]
[From the U.S. Government Printing Office]

[DOCID: f:publ438.110]

[[Page 5000]]

          NATIONAL GUARD AND RESERVISTS DEBT RELIEF ACT OF 2008

[[Page 122 STAT. 5001]]

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. <<NOTE: Oct. 20, 2008 -  [S. 3197]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: National 
Guard and Reservists Debt Relief Act of 2008. Bankruptcy.>> 
SECTION 1. <<NOTE: 11 USC 101 note.>> 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 <<NOTE: Deadline.>> General Study.--Not later than 2 
years after the effective date of this Act, the Comptroller General 
shall

[[Page 122 STAT. 5002]]

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--

[[Page 122 STAT. 5003]]

                          (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. <<NOTE: 11 USC 707 note.>> 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.

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.

                                  <all>
```