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Military Bankruptcy

Can You File Bankruptcy When Serving in The Military

Can you file for bankruptcy while in the military? Of course you can. You don’t lose that right because you are serving our country. Wright Patterson Air Force Base houses thousands of servicemen and women in Ohio, and depending on circumstances, bankruptcy can be a solution to their financial woes. If that is you, call us at 937-748-1749 for a free military bankruptcy consultation.

By the way, I proudly served in the U.S. Navy back in the 1970’s. I thank each and every one of our service members for their service to our country.

Security Clearance and Military Bankruptcy

Many of our service personnel need to file for bankruptcy, but worry about their security clearance. Military service and bankruptcy can coexist without affecting your security clearance or your job position.

Filing bankruptcy has yet to create any loss of security clearance for any of my clients to date. They do report the bankruptcy to their commanding officer, and the security people are notified.

Several of my military clients have shared with me that their security officer has informed them that it’s not a problem to use Federal Law to deal with debts.

In fact, if you carry more debt than you can pay, this fact alone might cause MORE trouble for you than a bankruptcy would. Just letting debt get out of hand will create a problem they don’t want you to have.

You don’t give up your right to file for bankruptcy because you serve in the military. With WPAFB so close to my home office, I’ve helped hundreds of servicemen and women with bankruptcy.

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Choosing Chapter 7 or Chapter 13 for a Military Bankruptcy

There is no difference between Chapters 7 and 13 for our military personnel. I’ve filed over a hundred military cases, with the mixture about evenly split.

Often, moving expenses are not reimbursed enough to cover the cost of relocating a family to a new duty station. Or, unexpected expenses create credit card debt that eventually becomes impossible to deal with any other way.

Just like the civilian population, service members sometimes need debt relief, and a military bankruptcy is the best way to handle serious money problems in or out of the service.

Military Bankruptcy and the Haven Act

The HAVEN Act became effective August 23, 2019. I have already used the Act for several of my military clients. Among other things, it excludes veterans’ benefits from being counted in the means test, just like social security benefits have always been excluded.

Several of my clients were unable to file Chapter 7 cases or were required to pay more to their creditors due to their VA benefits. No more!

I’ve discussed this matter directly with our local United States Trustee’s office. I was informed that veteran’s benefits will not be counted for purposes of the means test by any of our local trustees in the Southern District of Ohio.

Furthermore, if we disclose these benefits, they will also not be counted for other bankruptcy purposes. Thus, the law now treats veterans more fairly than before when they need to seek bankruptcy protection.

I’m proud to be a veteran. And, I am proud to file military bankruptcy for my fellow veterans and for active duty servicemembers. We can do your entire case online.

A military bankruptcy can help you focus on your job and not worry about your finances.

Reach out today for a free consultation.

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