Hirono, Colleagues Introduce National Guard and Reservists Debt Relief Extension Act

WASHINGTON, DC – U.S. Senator Mazie K. Hirono joined Senators Dick Durbin (D-IL) and Lindsey Graham (R-SC) in introducing the bipartisan National Guard and Reservists Debt Relief Extension Act to reauthorize relief for an additional four years for qualifying members of the National Guard and Reserves experiencing financial hardship. The legislation would protect a long-standing bipartisan carveout from means-testing restrictions in Chapter 7 bankruptcy cases.

The National Guard and Reservists Debt Relief Extension Act of 2023 would reauthorize the National Guard and Reservists Debt Relief Act of 2008, which included a clause exempting qualifying members of reserve components of the Armed Forces and the National Guard from provisions in the Bankruptcy Code, which limit access to Chapter 7 bankruptcy based on recent income. Because National Guard members and reservists often receive higher pay while on active duty than at their civilian jobs, these limits could otherwise prevent them from receiving financial relief in bankruptcy.  The National Guard and Reservist Debt Relief Extension Act ensures that they are not penalized for their service.

In addition to Senator Hirono, the bill is cosponsored by Senators Sheldon Whitehouse (D-RI), John Cornyn (R-TX), Amy Klobuchar (D-MN), Richard Blumenthal (D-CT), John Kennedy (R-LA), and Thom Tillis (R-NC).

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