Published On: Wed, Dec 13th, 2017

What Is a Military Bankruptcy?

Just like any other person in the USA, active military personnel are entitled to personal bankruptcy. Members of the military are expected to be skilled at money management, so creditors are usually very willing to give them a lot of credit or, in some cases, unlimited credit.

However, there are some unpredictable and unforeseen situations where your debt can get out of control. That’s when you need to think about what is the best course of action for you. Bankruptcy, even though it is a serious move, might just be it. Contact a skilled attorney for a consultation to see whether it can help you in your specific situation. If you want to learn more about bankruptcy for military personnel, read on.

Photo/Nodar Kherkheulidze via wikimedia commons

Does Bankruptcy Affect Security Clearance?

As mentioned above, members of the military are expected to be good at managing money. That is why having unmanageable debt is very bad for your security clearance. That’s why bankruptcy is not a bad idea to consider. The bankruptcy itself is not the cause for losing your security clearance.

What’s more, clearing away your outstanding debt can only help you in your security clearance review. However, the decision whether you get to keep your clearance is largely in the hands of your reviewer. The bottom line is that you would much rather go into this hearing without debt than with it.

Can I File for Bankruptcy While Deployed Overseas?

The short answer is yes. The majority of the communication can be done electronically, so the attorneys can prepare your case even while you are away. Good bankruptcy attorneys like https://www.thebklawyers.com/ can organize everything for you, but you do need to appear at your hearing.

If the hearing is scheduled for a date when you are still deployed, your attorney should be able to either organize a rescheduling or a telephone hearing, depending on the court’s timetable.

Can’t I Use a JAG Attorney?

Sadly, JAG office cannot be involved in your bankruptcy case. This comes largely because your right to bankruptcy is a federal right and has nothing to do with the military. You will need to hire a civilian attorney, as it is complicated to represent yourself in this highly specialized field of law.

Does the Military Command Need to Be Informed?

The military command does not need to be implicated in your bankruptcy case, as it is your right as a citizen of the USA. What’s more, any skilled and responsible bankruptcy lawyer would never report this to your superiors. Additionally, your bankruptcy should have no effect on your career and potential promotions down the line, since the command does not need to know about this problem.

Furthermore, it is your attorney’s responsibility to contact your creditors and inform them of the bankruptcy filing. This move should result in a few things. First of all, it automatically disables the creditors from going to your command and asking for the debt to be paid. If the creditors have been garnishing your salary, this information should make them stop. Failing to desist is in direct violation of the law, and can result in various sanctions to the creditors.

Furthermore, this communication with the creditors also results in momentary stopping of annoying and harassing calls by the creditors to you and your family.

Does My Family Need to Be Involved?

If your spouse does not file for bankruptcy together with you, your filing should have no effect on them. All bankruptcy files are tracked by your name and social security number.

Whether you are looking to delete your debt or just reprogram it, you have the same right like any other American, so do your best to take it and get your life back on track and save your job.

Author: Lara Janssen

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