Bankrupt vets can lose their disability benefits. This new effort would protect them.
The Honoring American Veterans in Extreme Need (HAVEN) Act seeks to create the same immunity in bankruptcy cases for benefits provided by the VA and Department of Defense to disabled veterans and their surviving spouses.
Sen. Tammy Baldwin, D-Wis., and Sen. John Cornyn, R-Texas, introduced the bill, which has already been endorsed by 10 Republican and 10 Democratic senators. It has also earned the support of organizations like the American Legion, Disabled Veterans of America and the American Bankruptcy Institute, among others.
“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.”