Service Members Civil Relief Act and Bankruptcy Protection
For service members who are faced with debt and are thinking about the option of bankruptcy, there are many potential issues that need to be considered. There are a lot of smaller details that need to be taken care of, and if your lawyer is not aware of the special challenges and advantages that military members have when filing bankruptcy, it can cost you.
Throughout North County and San Diego County, we provide honest advice, helpful answers and dedicated representation to military members who are struggling through tough financial issues. Alzate Varley, APC, handles military bankruptcy cases in California.
Learn whether bankruptcy is right for you by contacting us and scheduling a free initial phone consultation. We can provide the honest advice and helpful answers you need.
Important Considerations in Military Bankruptcy
A lot of the issues involved in military bankruptcy are related to qualification. The base housing allowance, for example, still counts towards income when determining qualification for Chapter 7 bankruptcy. That allowance may get a person into a level where he or she does not qualify. It is also important to look at the LES carefully, as well as increased combat pay, to plan around deployment and income issues. Additionally, your attorney should be conscious of security clearance issues that could be impacted before filing for bankruptcy.
What happens if you are deployed after your bankruptcy case is filed? The Servicemembers Civil Relief Act states that it is possible to keep creditors at bay while a military member is deployed. A reservist who is called to duty and has to leave his or her job will also have an exception to the means test. These, and other issues in military bankruptcies, are why it is so important to have a lawyer on your side who has successfully resolved military bankruptcies in the past and understands the unique circumstances.