Debt Relief for Military Service Members, Veterans, Family Farmers and Small Business Owners

Small Business Reorganization Act of 2019 (HR 3311) – Scheduled to take effect starting in February 2020, this new law offers small businesses more agreeable terms when filing for Chapter 11 bankruptcy status. The bill gives owners:

• More time (90 days) to file a reorganization plan with easier rules for extension
• The ability to retain ownership of the company even if debts are not paid in full
• A new formula for debt payments based on projected disposable income over three to five years
• Reduced red tape through the appointment of a “standing trustee” (instead of a credit committee) to oversee the reorganization process
• A more “fair and equitable” process to determine owner and creditor equity interests
• More protection against creditor ability to take away personal assets, such as a home

This bill was introduced by Rep. Ben Cline (R-VA) on June 18 and signed into law by the president on Aug. 23.

HAVEN Act (HR 2938) – Introduced on May 23 by Rep. Lucy McBath (D-GA), this legislation was enacted on Aug. 23. It stands for “Honoring American Veterans in Extreme Need.” The new bill eliminates veterans’ disability benefits (joining the status of Social Security payouts) from being included as income for the purpose of determining how much a veteran who files for personal bankruptcy must pay creditors.

National Guard and Reservists Debt Relief Extension Act of 2019 (HR 3304) – This bill was introduced by Rep. Steve Cohen (D-TN) on June 18 and signed into law on Aug. 23. The legislation reauthorizes an exemption to certain bankruptcy means-testing for members of the National Guard and Reserves (serving on active duty or in a homeland defense activity for at least 90 days) who file for bankruptcy.

Family Farmer Relief Act of 2019 (HR 2366) – This legislation increases the Chapter 12 operating debt cap to $10 million, which will enable more family farmers to seek relief under the U.S. Bankruptcy Code. The bill was introduced on April 3 by Rep. Antonio Delgado (D-NY) and was signed into law by the president on Aug. 23.

Creating Advanced Streamlined Electronic Services for Constituents Act of 2019 (HR 1079) – This bill mandates the Office of Management and Budget to create a private, secure electronic submission process to request assistance for government services such as Social Security, Medicare, Veterans Affairs or any other federal agency. The legislation was introduced on Feb. 7 by Rep. Garrett Graves (R-LA). The president signed the bill into law on Aug. 22.

Emergency Medical Services for Children Program Reauthorization Act of 2019 (HR 776) – This bill reauthorizes (through fiscal year 2024) the Emergency Medical Services for Children Program. This is a grant program administered by the Health Resources and Services Administration that works to improve emergency healthcare for children who are seriously ill or injured. The legislation was sponsored by Rep. Peter King (R-NY). It was introduced on Jan. 24 and signed into law by the president on Aug. 22.