[United States Statutes at Large, Volume 122, 110th Congress, 2nd Session]
[From the U.S. Government Publishing Office, www.gpo.gov]

122 STAT. 5000

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. [NOTE: Oct. 20, 2008 -  [S. 3197]

Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, [NOTE: National
Guard and Reservists Debt Relief Act of 2008. Bankruptcy.
SECTION 1. [NOTE: 11 USC 101 note.   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 [NOTE: Deadline.   General Study.--Not later than 2
years after the effective date of this Act, the Comptroller General
shall

[[Page 5001]]
122 STAT. 5001

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--

[[Page 5002]]
122 STAT. 5002

(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. [NOTE: 11 USC 707 note.   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.

LEGISLATIVE HISTORY--S. 3197 (H.R. 4044):
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HOUSE REPORTS: No. 110-726 accompanying H.R. 4044 (Comm. on the
Judiciary).
CONGRESSIONAL RECORD, Vol. 154 (2008):
Sept. 30, considered and passed Senate.
Oct. 2, 3, considered and passed House.