[Congressional Record Volume 157, Number 181 (Tuesday, November 29, 2011)]
[House]
[Pages H7906-H7907]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


     NATIONAL GUARD AND RESERVIST DEBT RELIEF EXTENSION ACT OF 2011

  Mr. CHAFFETZ. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 2192) to exempt for an additional 4-year 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.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 2192

       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 Reservist 
     Debt Relief Extension Act of 2011''.

     SEC. 2. NATIONAL GUARD AND RESERVISTS DEBT RELIEF AMENDMENT.

       Section 4(b) of the National Guard and Reservists Debt 
     Relief Act of 2008 (Public Law 110-438; 122 Stat. 5000) is 
     amended by striking ``3-year'' and inserting ``7-year''.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Utah (Mr. Chaffetz) and the gentleman from Tennessee (Mr. Cohen) each 
will control 20 minutes.
  The Chair recognizes the gentleman from Utah.


                             General Leave

  Mr. CHAFFETZ. I ask unanimous consent that all Members may have 5 
legislative days within which to revise and extend their remarks and 
include extraneous materials on H.R. 2192 currently under 
consideration.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Utah?
  There was no objection.
  Mr. CHAFFETZ. Mr. Speaker, I yield myself such time as I may consume.
  Before us today is an important bill sponsored by my colleagues from 
Tennessee (Mr. Cohen) and Virginia (Mr. Forbes).
  On the 10th anniversary of September 11, 2001, Americans paused to 
honor the memory of the innocent victims who perished that tragic day. 
We also were reminded of the bravery of American military personnel and 
thanked military families for their sacrifice. The last 10 years have 
been trying on our uniformed men and women, including our military 
reservists and members of the National Guard. About 1 million 
reservists and guardsmen have been deployed to Iraq or Afghanistan over 
the past 10 years. For that, we are very, very grateful.
  The Federal Government has a responsibility to ease the transition of 
reservists and guardsmen back into civilian life upon their return home 
from war. Many of them return home with physical handicaps. For many 
others, psychological challenges face them and their families. Some of 
these veterans and their families have suffered financial hardships, 
and frequently bankruptcy is, unfortunately, the last resort.
  In a chapter 7 bankruptcy, a debtor surrenders virtually all their 
assets to the bankruptcy trustee and receives a discharge at the end of 
the short case. In contrast, in a chapter 13 case, the debtor retains 
their assets but must commit their disposable income over the next 3 to 
5 years to the repayment of their creditors before receiving a 
discharge from their debts.
  In 2005, Congress enacted the Bankruptcy Abuse Prevention and 
Consumer Protection Act, often referred to as BAPCPA. A significant 
policy goal of that act was to combat a perceived abuse of chapter 7 
bankruptcy. In BAPCPA, Congress inserted into the Bankruptcy Code a way 
to determine whether a debtor has a disposable income that can be used 
to pay their debts. This is commonly referred to as the means test. If 
a debtor is able to pay some portion of their debts from their 
disposable monthly income, then their filing of a chapter 7 bankruptcy 
is presumed to be an abuse of the bankruptcy system. The debtor remains 
eligible for relief under other bankruptcy chapters, including chapter 
13, where they can restructure how they pay their debts from their 
disposable income.
  In 2008, Congress recognized that military reservists and National 
Guardsmen sometimes suffer unique financial difficulty resulting from 
their military service, so we enacted the National Guard and Reservist 
Debt Relief Act, which President Bush signed into law in October of 
2008. That act allows reservists and National Guardsmen to bypass the 
means test, making it easier for them to file a chapter 7 case. When 
they return from the front lines of war, they have endured enough. They 
do not need to also suffer a presumption of bankruptcy abuse if they 
are in need of a quick, fresh start in bankruptcy. That act expires in 
December of this year. H.R. 2192, which Mr. Cohen and Mr. Forbes have 
introduced, extends the sunset date of the act that was passed in 2008.
  America is still a nation at war, and we continue to call on our 
guardsmen and reservists to perform heroic tasks. During these trying 
times, Congress should not make life more difficult for these brave men 
and women by allowing these means test exemptions to lapse. The bill 
extends the sunset date by 4 years, at which time Congress will have 
the opportunity to reexamine whether this means test carveout has 
served its purpose and whether it is needed any longer.
  I want to thank, again, Mr. Cohen and Mr. Forbes for introducing this 
important and timely legislation. I encourage my colleagues to vote 
``yes'' on the bill.
  I reserve the balance of my time.
  Mr. COHEN. Mr. Speaker, I yield myself as much time as I may consume.
  I rise in strong support of H.R. 2192, the National Guard and 
Reservist Debt Relief Extension Act of 2011. This bipartisan 
legislation, which I introduced in June of this year with Mr. Forbes, 
Mr. Rohrabacher and others, ensures that certain members of the 
National Guard and Reserves who fall on hard economic times after their 
service to this country will continue to obtain bankruptcy relief 
without having to fill out the substantial paperwork required by the 
so-called means test under chapter 7 of the Bankruptcy Code.

                              {time}  1630

  H.R. 2192 simply extends the existing means test exception, which 
will expire in a few weeks if Congress fails to act, and act we should 
for our reservists and National Guardspeople who have put themselves in 
the line of fire for our country and our safeties and liberties.
  Under the means test, a chapter 7 bankruptcy case is presumed to be 
an abuse of the bankruptcy process if it appears that the debtor has 
income in excess of certain thresholds.
  The National Guard and Reservist Debt Relief Act of 2008 created an 
exception to the means test's presumption for members of the National 
Guard and Reserves who, after September 11, 2001, served on active duty 
or in a homeland defense activity for at least 90 days. The exception 
remains available for 540 days after the servicemember leaves the 
military.
  The National Guard and Reservist Debt Relief Extension Act of 2011 
would simply extend that exception until December 2015. This modest, 
but important exception to the means test allows qualifying members of 
the National Guard and Reserves to obtain chapter 7 bankruptcy relief 
without fulfilling the means test paperwork requirements.
  Since September 11, 2001, more than 815,000 members of the National 
Guard and Reserves have been deployed to Iraq and Afghanistan, with 
many having served multiple tours of duty.
  As of August of this year, members of the National Guard and Reserves 
made up 43 percent of U.S. forces in Iraq and Afghanistan and represent 
more than 20 percent of those killed in action and 20 percent of those 
wounded in action. Many of these citizen warriors have been asked to 
disrupt their civilian lives with little notice to serve their country 
in active war zones, and like other veterans returning from war zones, 
they often have difficulty adjusting to civilian life.
  It is estimated that approximately 40 percent of all Guard members 
will experience some sort of financial hardship and that 26 percent of 
Guard members had money problems related to their deployment into war 
zones.
  H.R. 2192 is a meaningful way for our Nation to recognize the 
tremendous sacrifice made by National Guard and Reserve members who 
have served on active duty or homeland defense since

[[Page H7907]]

September 11, 2001, and may be suffering financial hardship. This 
bipartisan measure is in the tradition of the GI Bill, the 
Servicemembers Civil Relief Act, and numerous other provisions of law 
enacted to benefit military veterans.
  I thank Representatives Forbes and Rohrabacher, two members of the 
Republican Party who worked with me on this and helped cosponsor it, 
and Representatives Schakowsky and Nadler of my party for cosponsoring 
H.R. 2192. I also thank the Judiciary Chairman, Mr. Smith, the Ranking 
Member, Mr. Conyers, and the Subcommittee on Courts, Commercial and 
Administrative Law chairman, the distinguished Mr. Howard Coble, for 
their assistance in moving this bill.
  This bill does indeed help Reservists and National Guardsmen in a 
special way. But it also shows that the previous bill that Mr. Chaffetz 
sponsored shows that we in the Judiciary Committee can work in a 
bipartisan manner, and that Congress can work, and that we should be at 
least in double digits.
  I urge my colleagues to support H.R. 2192, and I yield back the 
balance of my time.
  Mr. CHAFFETZ. Mr. Speaker, I have no additional speakers at this 
time. I would encourage my colleagues to vote for this. It's a good day 
when we can come to the floor of the House and vote in support of our 
Guardsmen and those serving in our military.
  I appreciate, again, the good bipartisan support and work of Mr. 
Cohen, Mr. Forbes, and others.
  With that, I yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Utah (Mr. Chaffetz) that the House suspend the rules and 
pass the bill, H.R. 2192.
  The question was taken.
  The SPEAKER pro tempore. In the opinion of the Chair, two-thirds 
being in the affirmative, the ayes have it.
  Mr. COHEN. Mr. Speaker, on that I demand the yeas and nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, further 
proceedings on this question will be postponed.

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