Bill gives vets a break during bankruptcy proceedings
- By Sherkiya Wedgeworth
- Jul 17, 2019
New legislation that recently passed the House will protect the financial security of veterans who receive disability benefits and may be experiencing financial hardship.
Included in the National Defense Authorization Act of 2019, which passed the full Senate last month, is the Honoring American Veterans in Extreme Need (HAVEN) Act. HAVEN would exclude Veterans Affairs and Defense Department disability payments made to veterans or their dependent survivors from the monthly income calculation used during a bankruptcy.
Currently, disability benefits paid by DOD and the VA are included in the calculation of a debtor’s disposable income, but bankruptcy law exempts Social Security disability benefits from the calculation. HAVEN brings some parity to the issue.
“Forcing our veterans and their families to dip into their disability-related benefits to pay off bankruptcy creditors dishonors their service and sacrifice,” Sen. Tammy Baldwin (D-Wisc.) said in a statement, adding, “These benefits are earned, and we must do right by our veterans and safeguard the disability benefits our veterans and their families depend on and provide the financial security they deserve.”
Sen. John Cornyn (R-Texas) co-sponsored the bill with Baldwin.
“By protecting their disability compensation during bankruptcy, we can help them and their families regain financial stability,” he added.
View the bill here.