National Guard and Reservists Debt Relief Act of 2008
PL 110-438 (S.3197), enacted 10/20/2008

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 imme-
diately 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 begin-
ning 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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122 STAT. 5001 
PUBLIC LAW 110–438—OCT. 20, 2008 
complete and transmit to the Speaker of the House of Representa-
tives 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 compo-
nents 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 prac-
tices 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 credi-
tors— 
(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 provi-
sions, 
(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 bank-
ruptcy 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 Judici-
ary). 
CONGRESSIONAL RECORD, Vol. 154 (2008): 
Sept. 30, considered and passed Senate. 
Oct. 2, 3, considered and passed House. 
(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 prac-
tices adopted by such members in anticipation of bene-
fitting 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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