110TH CONGRESS 

2D SESSION S. 3197 

AN ACT 

A bill to amend title 11, United States Code, to exempt 

for a limited period, from the application of the meanstest 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. 
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1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

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

5 Reservists Debt Relief Act of 2008’’. 

6 SEC. 2. AMENDMENTS. 

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

8 is amended— 

9 (1) in clauses (i) and (ii)— 

10 (A) by indenting the left margin of such 

11 clauses 2 ems to the right, and 

12 (B) by redesignating such clauses as sub13 clauses (I) and (II), respectively, 

14 (2) by striking ‘‘testing, if the debtor is a dis15 abled veteran’’ and inserting the following: 

16 ‘‘testing— 

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

18 (3) by striking the period at the end and insert19 ing ‘‘; or’’, and 

20 (4) by adding at the end the following: 

21 ‘‘(ii) with respect to the debtor, while the debtor 

22 is— 

23 ‘‘(I) on, and during the 540-day period be24 ginning immediately after the debtor is released 

25 from, a period of active duty (as defined in sec-
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1 tion 101(d)(1) of title 10) of not less than 90 

2 days; or 

3 ‘‘(II) performing, and during the 540-day 

4 period beginning immediately after the debtor is 

5 no longer performing, a homeland defense activ6 ity (as defined in section 901(1) of title 32) 

7 performed for a period of not less than 90 days; 

8 if after September 11, 2001, the debtor while a 

9 member of a reserve component of the Armed 

10 Forces or a member of the National Guard, was 

11 called to such active duty or performed such home12 land defense activity.’’. 

13 SEC. 3. GAO STUDY. 

14 (a) COMPTROLLER GENERAL STUDY.—Not later 

15 than 2 years after the effective date of this Act, the Comp16 troller General shall complete and transmit to the Speaker 

17 of the House of Representatives and the President pro 

18 tempore of the Senate, a study of the use and the effects 

19 of the provisions of law amended (and as amended) by 

20 this Act. Such study shall address, at a minimum— 

21 (1) whether and to what degree members of re22 serve components of the Armed Forces and members 

23 of the National Guard avail themselves of the bene24 fits of such provisions, 
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1 (2) whether and to what degree such members 

2 are debtors in cases under title 11 of the United 

3 States Code that are substantially related to service 

4 that qualifies such members for the benefits of such 

5 provisions, 

6 (3) whether and to what degree such members 

7 are debtors in cases under such title that are materi8 ally related to such service, and 

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

10 section 707(b)(2)(D) of such title, as amended by 

11 this Act, has on the bankruptcy system, creditors, 

12 and the debt-incurrence practices of such members. 

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

14 (1) a case shall be considered to be substan15 tially related to the service of a member of a reserve 

16 component of the Armed Forces or a member of the 

17 National Guard that qualifies such member for the 

18 benefits of the provisions of law amended (and as 

19 amended) by this Act if more than 33 percent of the 

20 aggregate amount of the debts in such case is in21 curred as a direct or indirect result of such service, 

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

23 related to the service of a member of a reserve com24 ponent of the Armed Forces or a member of the Na25 tional Guard that qualifies such member for the ben-
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1 efits of such provisions if more than 10 percent of 

2 the aggregate amount of the debts in such case is 

3 incurred as a direct or indirect result of such serv4 ice, and 

5 (3) the term ‘‘effects’’ means— 

6 (A) with respect to the bankruptcy system 

7 and creditors— 

8 (i) the number of cases under title 11 

9 of the United States Code in which mem10 bers of reserve components of the Armed 

11 Forces and members of the National 

12 Guard avail themselves of the benefits of 

13 such provisions, 

14 (ii) the aggregate amount of debt in 

15 such cases, 

16 (iii) the aggregate amount of debt of 

17 such members discharged in cases under 

18 chapter 7 of such title, 

19 (iv) the aggregate amount of debt of 

20 such members in cases under chapter 7 of 

21 such title as of the time such cases are 

22 converted to cases under chapter 13 of 

23 such title, 

24 (v) the amount of resources expended 

25 by the bankruptcy courts and by the bank-
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1 ruptcy trustees, stated separately, in cases 

2 under title 11 of the United States Code in 

3 which such members avail themselves of 

4 the benefits of such provisions, and 

5 (vi) whether and to what extent there 

6 is any indicia of abuse or potential abuse 

7 of such provisions, and 

8 (B) with respect to debt-incurrence prac9 tices— 

10 (i) any increase in the average levels 

11 of debt incurred by such members before, 

12 during, or after such service, 

13 (ii) any indicia of changes in debt-in14 currence practices adopted by such mem15 bers in anticipation of benefitting from 

16 such provisions in any potential case under 

17 such title; and 

18 (iii) any indicia of abuse or potential 

19 abuse of such provisions reflected in the 

20 debt-incurrence of such members. 

21 SEC. 4. EFFECTIVE DATE; APPLICATION OF AMENDMENTS. 

22 (a) EFFECTIVE DATE.—Except as provided in sub23 section (b), this Act and the amendments made by this 

24 Act shall take effect 60 days after the date of enactment 

25 of this Act. 
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1 (b) APPLICATION OF AMENDMENTS.—The amend2 ments made by this Act shall apply only with respect to 

3 cases commenced under title 11 of the United States Code 

4 in the 3-year period beginning on the effective date of this 

5 Act. 

Passed the Senate September 30 (legislative day, 

September 17), 2008. 

Attest: 

Secretary. 
110TH CONGRESS 

2D SESSION S. 3197 

AN ACT 

A bill to amend title 11, United States Code, to exdefense activity for not less than 90 days. called to active duty or to perform a homeland tional Guard who, after September 11, 2001, are of the Armed Forces and members of the Na- ter 7, qualifying members of reserve components the means-test presumption of abuse under chap- empt for a limited period, from the application of