Members of all branches of the military, including Army, Navy, Air Force, Marines, and Coast Guard, have the right to file bankruptcy. Bankruptcy is your legal right provided by the United States Constitution and by Federal law. Members of the military must be financially responsible. Being financially responsible means that you pay your bills on time. If you are behind on your payments, then being financially responsible means dealing with your debt problem and not running away from them. Ignoring your debts is not being financially responsible.
Sometimes, depending upon your circumstances, being financially responsible may mean to sit down with a San Diego bankruptcy lawyer and discuss your situation. You may need to face your debt problems by filing a Chapter 7 or Chapter 13 case to get out of debt San Diego and get a fresh start. Filing a bankruptcy is definitely a more financially responsible act than the alternative of ignoring your debts and creditors. A San Diego military bankruptcy attorney can help you file a Chapter 7 or Chapter 13 case successfully, while helping you to rebuild your credit and keep your security clearance.
Many people mistakenly see bankruptcy as a negative thing and don't see all of the benefits of bankruptcy. In fact, a bankruptcy can help you rebuild credit and is often a very positive and responsible step in the right direction toward building a more secure financial future for you and your family.
If you are late on your credit card payments or other payments, or have other negative reports on your credit, your credit score may be in the 500s or even the 400s. Filing bankruptcy can help you rebuild credit and in many cases you can have a 600 credit score after bankruptcy within 1-2 years after your case is filed. You can then gradually raise your credit score to the 700 range, even with a bankruptcy on your credit report.
If your husband or wife is on active duty overseas and cannot make it to see your attorney to sign your petition and schedules required to file your case, you can get a power of attorney authorizing you to sign the required papers for your spouse. You can then file a case for your spouse while he or she is stationed overseas. You will have to file in the state where your spouse resides (when they are here in the U.S.) or where they own property.
Whether a bankruptcy filing will affect your military security clearance depends on the facts underlying your case and what led up to your filing. If you incurred debt in an irresponsible manner, such as buying a lot of luxury goods, the security section may view you as too irresponsible to be trusted with security clearance. If you incurred your debt for necessaries of life and just couldn't repay them because your debt got out of control, you and your lawyer may be able to make a good case that you are still a responsible person who just needs a fresh start. If you have military security clearance, the filing of a bankruptcy does not, by itself, automatically disqualify you from keeping your security clearance. Instead, the security section will look at the circumstances surrounding your filing to see the reason why you filed and if you are responsible enough to be trusted with sensitive information. In fact, many of our clients keep their security clearance after we file their case.
If you are a member of our armed forces living in San Diego and you need debt relief, talk to a San Diego bankruptcy attorney about your options and the potential effect a bankruptcy may have on your security clearance. Contact us today to set up a free consultation with a San Diego bankruptcy lawyer. Call 619-501-9711.