Military Bankruptcy Attorney in Waco, TX

Help with Security Clearance

Stop AAEFS Garnishments

Stop Creditor Harassment

Free Consultations

 

As the economic climate continues to deteriorate in the U.S., financial difficulties seem to be affecting more and more individuals. Foreclosures and bankruptcies are now at record highs throughout the nation. To complicate matters, members of the military have special considerations and concerns.  As a military bankruptcy attorney with an office in Killeen, Texas just miles from the entrance of Ft. Hood, my staff and I daily counsel soldiers, veterans and military contractors, who are experiencing financial difficulties, concerning their bankruptcy and non-bankruptcy options. My staff and I are honored to assist those who are serving our country address their financial problems.

Dischargable Debt & Involuntary Allotments

There are four different types of bankruptcy, each with their own rules and requirements. However, most individuals and small businesses file either a Chapter 7 or a Chapter 13 bankruptcy case. Debt owed to AAFES and Military Star is dischargable in a Chapter 7 or Chapter 13 bankruptcy case. Involuntary allotments initiated by AAFES or Military Star or any other creditor are also stayed by the filing of a Chapter 7 or Chapter 13 bankruptcy case and must be removed from the soldier’s paycheck (LES).

Security Clearance

The status of your security clearance can be affected by bankruptcy, but the circumstances that led up to the bankruptcy and a number of other factors, such as your job performance and your relationship with your chain of command, are also considered.

Unpaid debts may jeopardize your clearance, even if you don’t file bankruptcy. As such, using a law that was established by the authority of the U.S. Constitution to deal with one’s financial problems may be your smartest option. It’s a responsible and legal way of handling one’s debt. Not dealing with financial problems is irresponsible.

Losing one’s security clearance does not always have to be permanent. Our office recently represented a Ft. Hood soldier who had such severe debt problems that his military clearance privileges had been revoked. We were able to successfully guide him through the bankruptcy process, have all of his debts legally and fully discharged, and advocate for reinstatement of his security clearance. Imagine how happy he was when his security clearance was fully restored!

Disabled Veterans

In 2005, Congress made enacted substantial amendments to the Bankruptcy Code. Disabled veterans are now given special consideration, making Chapter 7 more accessible to members of the military and veterans. Specifically, Chapter 7 is fully available and a Court cannot convert a case to a Chapter 13 bankruptcy case if the debtor is a disabled veteran and his/her debts were primarily incurred while the debtor was on active duty or performing a homeland defense activity.

Chapter 7 Bankruptcy Eligibility

The bankruptcy court can find that a call to active duty in the U.S. armed services is a “special circumstance” thereby allowing a debtor to receive relief under Chapter 7. Additionally, special relief under Chapter 7 is also available to individuals who have served as members of a reserve component of the Armed Forces or a member of the National Guard. Under the 2005 amendments to the Bankruptcy Code, a debtor’s income during the six months preceding the filing of a bankruptcy case must be examined and compared to income of other individuals of the same household size according to the U.S. census. If a debtor’s household income is less than the median income according to the U.S. Census, Chapter 7 relief is virtually automatic.

If a debtor’s household income is more than the median income according to the U.S. Census, chapter 7 relief is still available but the forms that must be completed are more complicated.

Bankruptcy is a legal, constitutional, moral way in which to deal with financial difficulties. Many honorable Americans, including Walt Disney and President Abraham Lincoln, have unexpectedly found themselves in financial difficulties and chose filing a bankruptcy case as a way in which to deal with that problem. Filing a bankruptcy case is a serious matter. A bankruptcy case is a case commenced in U.S. federal court and all papers filed in the case by the debtor are signed under the penalty of perjury. However, with the help of an experienced military bankruptcy attorney, an honest debtor can find needed relief from otherwise insurmountable financial problems.

 

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