Extension of Temporary Exclusion from Means Testing

On December 13, the President signed the National Guard and Reservist Debt Relief Extension Act of 2011. This extension applies to certain Reservists and members of the National Guard for temporary exclusion from the bankruptcy means test and has been extended for an additional four years.

The temporary exclusion for Reservists and members of the National Guard as provided in The National Guard and Reservist Debt Relief Act of 2008, Pub. L. No. 110-438, called for no less than 90 days to active duty or homeland defense activity following September 11, 2001. On December 19, 2008, the Bankruptcy Code was amended to show this exclusion as evidenced in Section 707(b)(2)(D) of the Code.

Furthermore, Interim Rule 1007-I was transmitted to the courts for adoption as a local rule to implement this temporary exclusion. This rule along with an updated footnote which reflects the four year extension for the National Guard and Reservist Debt Relief Extension Act of 2011 can be found on the Federal Rulemaking website at:

http://www.uscourts.gov/RulesAndPolicies/FederalRulemaking/Overview/BankruptcyRules.aspx.