Certain situations such as needing to take care of a family member, inheriting large amounts of debt, or losing critical assets are all examples of how someone in the military can end up in a position of bankruptcy. Although the military usually receives extensive praise for its healthcare and access to cheap goods on base, the reality of daily life is that the unexpected can arise at any time. Reach out to a Florida consumer protection attorney from Sharmin & Sharmin to learn more about navigating dire financial situations while serving.
Pros and Cons of Filing for Bankruptcy in the Military
While initial instincts may indicate to someone that, as a result of serving in the military, they may not be entitled to the same financial rights as civilians, this is hardly the case. Legally speaking, there are no restrictions on military servicemen and servicewomen from filing for bankruptcy. In a further testament to the benefits of filing for bankruptcy, it is preferable to the US military that its members have their financial issues in order. As bankruptcy offers a slew of benefits to a claimant, it is far from frowned upon to file for bankruptcy in the military.
It is important to note that there is an initial potential drawback to filing for bankruptcy. Although legal and a plausible means of relieving indebtedness, there is a potential that one’s security clearance is affected. This is not automatic and depends on a number of circumstances, such as the influence of a bankruptcy claim on someone’s background check. An attorney should be consulted to determine a bankruptcy’s effect on background checks before filing.
How Service Members Can File with Chapter 7
Filing for bankruptcy is done so with “Chapter 7”. Chapter 7 refers to the United States Code that determines liquidation processes under the laws that govern bankruptcy in the US. This is a very common procedure for people across the country hoping to file for bankruptcy. To successfully file under this code, one must pass the “means test” to know if they are eligible for bankruptcy. The caveat for service members is that disabled veterans may be exempt from partaking in the means test. Other specific situations may determine if military members can receive protections or exemptions.
Protections are extended even further under the Servicemember’s Civil Relief Act (SCRA). The purpose of the SCRA was to aid those actively serving in the military dealing with a Chapter 7 or Chapter 13 bankruptcy in lieu of their daily duties. One is therefore able to dodge proceedings and postpone hearings temporarily in order to carry out their duties to the government. Should some of these move forward while someone is actively serving, it could have serious impacts on the financial well-being of the service member.
Entrust in the Experience of Attorneys at Sharmin & Sharmin
The process of filing for bankruptcy in the military is full of “ups and downs.” While there are many benefits to doing so, there are also potential drawbacks as well. It is always recommended by experts to reach out to an experienced Florida bankruptcy attorney who will be able to offer their experience in financial law to help ensure a stable financial future. Call a lawyer from Sharmin & Sharmin today at 1-844-Sharmin or by filling out an online contact form where you will be eligible for a free consultation.
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