The HAVEN Act is a U.S. federal law that was signed into law in 2019. Its common name, the HAVEN Act, is shorthand for "The Honoring American Veterans in Extreme Need Act of 2019". The law is designed to make it easier for disabled veterans to file for Chapter 7 bankruptcy and protect their disability benefits from creditors.
What Changed with the Passing of the HAVEN Act?
Before the HAVEN Act, disability payments from the Department of Veterans Affairs (VA) were included in the means test calculation used to determine eligibility for Chapter 7 bankruptcy. This meant that disabled veterans with higher income from their disability benefits were often ineligible for Chapter 7 bankruptcy and had to file for Chapter 13 bankruptcy instead, which involves a repayment plan. The HAVEN Act now excludes VA disability payments from the means test calculation, making it easier for disabled veterans to qualify for Chapter 7 bankruptcy and get a fresh start financially.
What Does the HAVEN Act Mean for America’s Veterans?
With the passing of the HAVEN Act, disability payments from the VA are now protected from creditors and cannot be included in the calculation of disposable income for the purposes of determining Chapter 7 eligibility. The HAVEN Act also applies to disability payments from the Department of Defense (DoD) for military retirees and their survivors. The law is intended to provide financial relief to disabled veterans and their families who are facing financial hardship due to disability-related medical expenses, job loss, or other financial difficulties.
If you’re a veteran living in Mobile, Alabama or the surrounding areas, find out how the HAVEN Act can work for you – call Ryan Legal Services, Inc. at (251) 241-5234 today!