Bankruptcy And Members Of The Military

In The Military And Fighting Bankruptcy? Contact A Lake Station Bankruptcy Lawyer Today!

Our United States service members have made innumerable sacrifices to protect our country and all of our freedom. For many of these soldiers, however, the pay is barely above poverty level. It is not surprising that so many members of our military – both active and veterans – struggle to pay their bills each month. Bankruptcy can become the only way for many people, including members of our armed forces, to get a fresh start in their financial life. Congress recognized special circumstances that may exist for our service members and created some special rules for those who are facing a bankruptcy filing, including exemption from the bankruptcy means test for disabled veterans and certain members of the National Guard. Additionally, the Servicemembers Civil Relief Act allows bankruptcy proceedings to be postponed while members of the Armed Forces are on active duty.

Security Clearances – Will A Bankruptcy Prevent Me From Obtaining One?

One of the factors that a member of the military needs to carefully consider is whether and how a bankruptcy may affect their military career. Though in many cases it may have no effect at all, there are specific issues that warrant forethought.  The issue of security clearance in particular is something that bears consideration. For some members of the military, higher level security clearances are required. One of the factors taken into consideration during the security clearance investigation process is a look at the financial health of the applicant. The fact that someone has financial troubles is less important overall than what type of behavior led to the troubles and how the individual is handling his or her situation. If an individual’s financial problems were caused by circumstances out of their control and they are actively trying to handle the situation, the security concern is much less than if the individual’s irresponsible behavior, gambling issues, or drug and alcohol abuse was a substantial part of the reason for their financial problems.

Why Do Finances Contribute To Security Concerns?

While financial troubles on their own are usually no indication of an individual’s trustworthiness or character, some people, when backed into a financial corner, become desperate and may begin to consider actions that they may not otherwise ever think about. In particular, when faced with extreme financial stress, some people could be tempted to commit an illegal act in an attempt to get out of their situation. The reasons for one’s financial problems and their attempts to properly deal with their situation may be a good indication of how much weight should be given to these issues during the clearance process.

Get Professional Advice Today

If you are a member of the Armed Forces and are facing the possibility of a bankruptcy, turn to Whitten & Whitten. We can help you consider all of the important issues as you make your decision about whether bankruptcy is the right option. Contact us online or call us at 219.756.0555 for your free consultation. We can help you determine the best way to proceed to get your financial situation on the right track.