On December 19, 2023, The National Guard and Reservists Debt Relief Extension Act of 2023 was signed into law.  This will extend certain exemptions for qualifying military reservists and National Guard Debtors from completing the Means Test when filing bankruptcy.  In essence, the Means Test uses your last 6 full months of income to determine whether you qualify for Chapter 7 or Chapter 13 bankruptcy.  However, if you are a reservist or National Guard debtor called to active duty (or to perform a homeland defense activity for more than 90 days), then you are exempt from completing the Means Test and therefore can qualify for Chapter 7 bankruptcy regardless of income levels.  You can also apply for this exemption if the bankruptcy is filed within 540 days of the conclusion of your active duty or homeland defense activity.  This exemption began December 19, 2008, and has been extended by Congress several times since then.  If you have questions on how this may affect you, or you are interested in learning more about the bankruptcy process then please call our office to set up a free consultation.