[Congressional Record Volume 165, Number 125 (Wednesday, July 24, 2019)]
[Extensions of Remarks]
[Pages E979-E980]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




         HONORING AMERICAN VETERANS IN EXTREME NEED ACT OF 2019

                                 ______
                                 

                               speech of

                        HON. SHEILA JACKSON LEE

                                of texas

                    in the house of representatives

                         Tuesday, July 23, 2019

  Ms. JACKSON LEE. Mr. Speaker, I rise in strong support of H.R. 2938, 
``The Honoring American Veterans in Extreme Need Act of 2019'', or the 
HAVEN Act.
  Section 2 would amend Bankruptcy Code section 101(1 OA), which 
defines current monthly income'' for purposes of the Code's means test, 
to exclude compensation paid by the U.S. Department of Veterans Affairs 
and the U.S. Department of Defense to an individual in connection with 
a disability, combat-related injury or disability, or death of a member 
of the uniformed services.
  I strongly support this legislation because it would bring certain 
veterans' disability benefits paid by the U.S. Department of Veterans 
Affairs and the U.S. Department of Defense into parity with the 
treatment of Social Security payments under the Bankruptcy Code's means 
test.
  Although Social Security benefits are not treated as income for 
purposes of the Bankruptcy Code's means test, veterans' disability 
benefits. do constitute income under this test.
  This requirement applies even with respect to servicemembers who have 
returned to the United States from active service and thus no longer 
receive combat pay.
  Under the means test, such servicemember would have to calculate his 
or her income based on the average monthly income that he or she 
received during the six-month period preceding the filing date of the 
bankruptcy case, rather than the debtor's actual income, which may be 
much less because of the debtor's non-combat status.
  Many veterans become ineligible for the more immediate discharge 
available under Chapter 7 and, instead, they are steered into Chapter 
13, which requires a debtor to make payments to creditors pursuant to a 
3 or 5 year plan before he or she can receive a discharge.
  According to the National Conference of Bankruptcy Judges (NCBJ), 
such treatment

[[Page E980]]

``will remedy an imbalance in the Bankruptcy Code that 
disproportionately steers veterans receiving such benefits into Chapter 
13 cases because they often fail the Chapter 7 means test.''
  This bill is supported by the Veterans of Foreign Affairs, the 
American Legion, and the Disabled American Veterans, the National 
Conference of Bankruptcy Judges, and the American College of Bankruptcy 
among others.
  Mr. Speaker, I urge my colleagues to join me in supporting H.R. 2938 
to allow our veterans to have a chance to provide for their families 
and to live a peaceful lifestyle.


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