The current bankruptcy code by Congress excludes disabled veterans from being classified amongst other disabled Americans. This makes the process for bankrupt veterans a much longer, and more difficult one.
The “current monthly income” definition prevents disabled veterans from being classified as Chapter 7 cases and instead classifies them as Chapter 13 cases. Chapter 7 (also know as Liquidation) is a traditionally fast process, but Chapter 13 (Reorganization), can take anywhere from three to five years to resolve.
However, according to an article published by The Hill, the Honoring American Veterans in Extreme Need (HAVEN) Act promises a “simple fix” to this problem.
Click here to learn more about HAVEN and how it can help veterans in need.
Relevant pages: Veterans Disability