Military Bankruptcy Attorney in Killeen, TX
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, Erin counsels soldiers, veterans, and military contractors, who are experiencing financial difficulties, concerning their bankruptcy and non-bankruptcy options. Erin and her paralegals are honored to assist those who are serving the country address their financial problems, such as:
- Wage garnishment by AAFES or Military Star
- Creditor harassment
Dischargeable Debt & Involuntary Allotments
There are four different types of bankruptcy, each with its 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 dischargeable in Chapter 7 or Chapter 13 bankruptcy cases. Involuntary allotments initiated by AAFES or Military Star or any other creditor are also stayed by the filing of Chapter 7 or Chapter 13 bankruptcy cases and must be removed from the soldier’s paycheck (LES).
Get help with your 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 military 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. The Killeen office recently represented a Ft. Hood soldier who had such severe debt problems that his military clearance privileges had been revoked. Erin was able to successfully guide him through the military bankruptcy process, have all of his debts legally and fully discharged, and advocate for the reinstatement of his security clearance. Imagine how happy he was when his security clearance was fully restored!
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 the 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 to file a bankruptcy case as a way in which to deal with that problem. Filing a military 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 bankruptcy attorney, an honest debtor can find needed relief from otherwise insurmountable financial problems.