Veterans struggling with overwhelming debt now receive favored treatment in bankruptcy. A new bankruptcy law helps veterans: the HAVEN Act allows veterans to receive a higher level of relief when bankruptcy is needed.

Certain Veteran and Military Disability Benefits No Longer Counted as Income in the Means Test.

Under the new law, veteran disability benefits no longer have to be counted in the bankruptcy means test. This makes it much easier for veterans to qualify for Chapter 7 bankruptcy.

Veterans No Longer Required to Use These Benefits to Pay Toward Debt in Chapter 13 Bankruptcy.

Veterans who file for Chapter 13 bankruptcy are no longer required to use veterans’ disability benefits to fund a Chapter 13 plan.

Disabled Veterans Are Now Given the Same Treatment as People Who Receive Social Security Benefits.

Social security benefits are already excluded from the means test and the budget in bankruptcy. Disabled veterans will now benefit from the same treatment currently given to disabled citizens in bankruptcy.