As more and more troops pull out of Iraq, there is much talk about how to help facilitate their transition back into life at home. With a struggling economy and high unemployment, some are worried about whether there are enough opportunities for returning servicemen and women in California and around the country.

Recent legislation will make it easier for some members of the military who are struggling with debt. A bill passed recently allows members of the National Guard and Reserves to file for Chapter 7 bankruptcy protection without undergoing a bankruptcy means test.

The National Guard and Reservist Debt Relief Extension Act was passed unanimously by the Senate earlier this month. The House passed the bill two days before the Senate.

The bankruptcy means test is imposed on most Americans who wish to file bankruptcy. The test is designed to show whether the filer has the ability to pay back his or her debt. In order to qualify for Chapter 7 bankruptcy protection - which is the most common form of bankruptcy - Americans have to pass the means test to prove they are not making too much money.

The new legislation paves the way for military members to take advantage of Chapter 7 bankruptcy protection with more ease than before. Chapter 7 bankruptcy, which is sometimes called liquidation bankruptcy, erases most of your bills. In exchange, a trustee sells some of your assets in order to pay your creditors. However, you may hold onto some assets, like furniture, appliances and retirement plans. A house and car may be kept also, as long as they meet certain equity requirements.

At least one senator has argued that the means test should be abolished entirely, so that no Americans would be subjected to it. He called it burdensome, noting that the bankruptcy protection system exists to offer Americans a fresh beginning.

Because Chapter 7 bankruptcy halts creditor harassment, repossession and wage garnishment - and clears almost all debt - it is often thought of as a fresh start.

Source: The Hill, "Senate approves bill to aid soldiers struggling with bankruptcy," Josiah Ryan, Dec. 2, 2011