Note: The National Guard and Reservists Debt Relief Extension Act of 2023 was signed into law on December 19, 2023, which extends this program for an additional 4 years.
The National Guard & Reservist Debt Relief Act 2008, incorporated in Federal Rule 1007.1, provides a temporary exemption from the means test requirement for chapter 7 debtors who are reservists or members of the National Guard.To qualify for the exemption, the active duty or homeland defense activity must be for a period of at least 90 days and must have occurred after September 11, 2001. The temporary exclusion applies for the duration of active duty and for 540 days following it's termination.
To declare their eligibility for the exclusion,a debtor must check item 3 on the Statement of Your Current Monthly Income (122A-1) AND must also complete Part 2 of the Statement of Exemption for Presumption of Abuse Under 707(b)(2) (122A-1Supp). See the screen shots below.
Both forms must be filed with the petition. However, the Statement of Exemption from Presumption of Abuse Under 707(b)(2) (122A-1Supp) form must be docketed separately from the petition using the Statement of Exemption from Presumption of Abuse Under Sec 707(b)(2) – Form 122A-1Supp event, located in the Misc. Events category.
During the exclusion period, debtors are not required to file the Chapter 7 Means Test Calculation (122A-2). However, the form must be filed no later than 14 days after the date on which the exclusion period expires if the expiration occurs within the time specified by Rule 1017(e) for filing a motion pursuant to Section 707(b)(2).
NOTE: In joint cases where one or both debtors are claiming the exemption, each debtor must file a separate Statement of Exemption for Presumption of Abuse Under 707(b)(2).