In Bankruptcy In The News

Signed by President Donald Trump, the HAVEN Act was first introduced on March 6, 2019, by U.S. House of Representatives Greg Steube (R-Fla.) and Lucy McBath (D-Ga.). The law came into consideration beforehand due to the unfair treatment of veterans during the bankruptcy process.

How Does the HAVEN Act Help?

The HAVEN Act is also known as the Honoring American Veterans in Extreme Need Act of 2019. Starting August 23rd, 2019, a veteran’s disability benefits are no longer considered as disposable income when determining bankruptcy. The HAVEN act now excludes these benefits as a means of repaying any debt by creditors. This means more veterans will be eligible to file bankruptcy.

Before the HAVEN act, a veteran’s disability payments were included as a source of usable income for debt collection. This meant a veteran was required to pay a portion of their benefits to their creditors as a means of fulfilling their part of the bankruptcy process. Seen as unfair, lawmakers also found it difficult for veterans to qualify for specific beneficial aspects of bankruptcy. Now it will be easier for veterans to qualify to have their debts discharged in a Chapter 7 Bankruptcy. It also means more veterans may qualify for lower payments in a Chapter 13 Bankruptcy.

Can the HAVEN Act Help My Circumstances?

The HAVEN Act may benefit you if you’re receiving certain disability benefits. Benefits protected under the HAVEN Act include:

  • Permanent Disability Retired Pay
  • Temporary Disability Retired Pay
  • Retired or Disability Severance Pay for Pre-Existing Conditions
  • Disability Severance Pay
  • Combat-Related Special Compensation
  • Survivor Benefit Plan for Chapter 61 Retirees
  • Special Survivor Indemnity Allowance
  • Special Compensation for Assistance with Activities of Daily Living
  • VA Veterans Disability Compensation
  • VA Dependency and Indemnity Compensation, and
  • VA Veterans Pension

Here at Malaise Law Firm, we understand, and we can help. Our attorneys can help you take advantage of the HAVEN Act to ensure you know if your rights remain protected. When you rely on us, we will use our extensive legal experience to provide you the representation you need. Call us today or contact us online to get started with a free consultation.

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