News & Articles

Three Recent Significant Changes to the Bankruptcy Code Affecting Veterans, Reservists, and Family Farmers

Published on 1/24/2020

While the Small Business Reorganization Act of 2019 garnered the bulk of the attention when it was passed late last summer, it actually was accompanied by three additional bills signed into law the same day that made meaningful changes to the Bankruptcy Code.  Here are the new Code provisions included in each of the three additional bills:

  1. The Family Farmer Relief Act: raised the eligible debt limit for Chapter 12 relief from $3,237,000 to $10,000,000.
  2. The Honoring American Veterans in Extreme Need Act (the “Haven Act”): made Chapter 7 more accessible for middle class veterans.
  3. The National Guard and Reservist Debt Relief Act: extended the exemption from Chapter 7 means testing for certain qualifying reservists.

These new Code provisions will have lasting impacts as more cases are filed in 2020.  The bankruptcy attorneys at Ryan Swanson understand the financial hardships that our combat veterans and family-owned farms face.  Using their deep knowledge of the Bankruptcy Code, the lawyers in Ryan Swanson’s Banking Services, Creditors’ Rights & Bankruptcy practice group are able to help clients navigate how these Acts affect their rights during Chapter 7 and 12 bankruptcies. Ryan Swanson is one of a handful of regional firms with Chapter 12 experience. If you have any questions about these new laws, do not hesitate to contact Joe Sakay, Chair of Ryan Swanson’s Banking Services, Creditors’ Rights & Bankruptcy practice group at 206.654.2242 or [email protected].

This message has been released by the Banking Services, Creditors’ Rights & Bankruptcy group at Ryan, Swanson & Cleveland, PLLC to advise of recent developments in the law. Because each situation is different, this information is intended for general information purposes only and is not intended to provide legal advice on any specific facts and circumstances. Ryan, Swanson & Cleveland, PLLC is a full-service law firm located in Seattle, Washington.

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