[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 3197 Enrolled Bill (ENR)]

        S.3197

                       One Hundred Tenth Congress

                                 of the

                        United States of America


                          AT THE SECOND SESSION

          Begun and held at the City of Washington on Thursday,
            the third day of January, two thousand and eight


                                 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 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--
                (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.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.