Are Military Members Eligible for Bankruptcy?

Military members and their families are often required to move from location to location, and put their lives on hold during their or their loved one’s military service. For some, this means facing financial challenges that might not exist otherwise. And even if those money problems did exist otherwise, the challenges that come with a military career make things even more stressful.

It can also be difficult to deal with the heightened expectations placed on you when you are in service to our country. Military members are expected to maintain good credit and make responsible choices, but nobody is able to control every single occurrence in his or her life. Sometimes unexpected events occur that lead to financial burden.

The good news is there are tools available for military members, just as there are for civilians that make it easier to deal with the burden of debt.

Is Bankruptcy an Option?

In some cases, filing for bankruptcy is going to be the best option to get control of a rough financial situation. It is possible for military members to file for bankruptcy and doing so can make it possible to maintain ownership of a home and other possessions.

There are some instances in which filing could interfere with security clearances, so it is important to understand your situation before moving forward. It might be better for you to take action sooner rather than later, if your goal is to one day be in a position in which you need clearance. On the other hand, your rocky financial situation and potential bankruptcy could prevent you from pursuing certain opportunities, so make sure you gather all the information you need to make an informed decision before filing for bankruptcy.

For more information on how the US government handles security clearances, visit the website for the US State Department.

Civil Relief Act

Members of the military might also have access to special protections through the Civil Relief Act. When choosing a bankruptcy attorney to help you with the filing process, look for someone who is aware of the benefits available for service members, so you can take advantage of everything offered to help you get back on your feet. You might also need to look into assigning someone power of attorney if you are stationed overseas and considering filing for bankruptcy, so it is imperative you work with someone you trust and who makes you feel comfortable with your situation.

Are you a service member struggling with debt? We can help. Contact the Law Offices of Robert M. Geller at 813.254.5696 to discuss your situation.