An amendment that will help low-income veterans gained passage in the Senate.
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An amendment that will help low-income veterans gained passage in the Senate. The amendment was put forward by Sen. Jeff Sessions (R-Alabama) and offers special consideration in bankruptcy for low-income veterans, active-duty military, and people who have serious medical conditions. The measure, Amendment 23 to Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (S. 256), passed by a vote of 66-32. The new protection for veterans is part of a new income test that Congress is debating for those going through bankruptcy. The legislation seeks to help clarify whether those seeking bankruptcy protection must repay their debts or are allowed to have them canceled. A report by the National Consumer Law Center in 2003 noted that veterans are often targeted by an expensive scam in which streams of their military pension and benefits payments are purchased for a lump sum, with high interest rates, although federal law prohibits such schemes. Such schemes can drive military retirees into bankruptcy. More information on S. 256.