New “HAVEN” act promises to protect bankrupt veterans

The Honoring American Veterans in Extreme Need (HAVEN) Act seeks to shield disabled veterans’ benefits from debt collectors and provide them with bankruptcy immunity.

According to an article published by the Military Times, “when a disabled vet declares bankruptcy currently, the law allows debtors to count a veteran’s disability benefits as disposable income, allowing them to seize the benefits. Yet Social Security disability benefits are exempted by law from being lumped into a person’s disposable income in bankruptcy filings, and disability benefits in any form aren’t taxable and therefore generally not considered disposable income.”

A new initiative called The Honoring American Veterans in Extreme Need (HAVEN) Act seeks to shield bankrupt veterans from debt collectors seeking settlement from them and their surviving spouses.

One of the senators that introduced the bill was Sen. Tammy Baldwin.“Right now, veterans and their families are forced to dip into their disability-related benefits to pay off bankruptcy creditors,” said Baldwin during an unveiling event for HAVEN in her Senate office. “And that’s not right. This reform will protect veterans’ disability benefits when they fall on hard times.”

To learn more about this bill and how it affects you, click here.