If you’re a service member, you have a right to hire Rafal Gorski Attorney At Law, bankruptcy lawyer in University Place WA, and file for bankruptcy just as a civilian does. Active duty military members and veterans have certain benefits not afforded to civilian debtors, but filing for bankruptcy can have certain effects on security clearances.
The Civil Relief Act Protects Military Personnel
The SCRA (Servicemembers’ Civil Relief Act) offers military personnel certain protections from civil actions. The SCRA gives courts the option to postpone or stay a bankruptcy proceeding against a military member who’s on active duty, and these protections go above and beyond what’s provided by a bankruptcy.
Vets Don’t Have to Take the Means Test
To qualify for Chapter 7, a debtor must ordinarily pass a means test. This test was created to weed out debtors who can afford to repay some of their debts. However, if you’re a disabled vet and your debts were accrued during active duty, you don’t have to take the means test.
National Guard Members and Reservists May Do Not Have to Take the Means Test
National Guard members and those in reserve units who were called up for at least 90 days after 9/11/2001 don’t have to take the Chapter 7 means test while they’re on active duty, and for 540 days following. The exclusion is temporary, and you must complete the means test forms no later than two weeks after your exclusion period is over.
Bankruptcy and Your Security Clearance
Filing for bankruptcy doesn’t always affect your security clearance. Whether yours is affected depends on factors such as your reason for filing, your on the job performance, and your interactions with other military members. However, in some cases, filing can help you because it’s sometimes viewed as a step toward fiscal responsibility. Determinations on security clearances are made on an individual basis. Because of this, prior to seeking bankruptcy, you should ask a certified bankruptcy lawyer in University Place, WA and ensure that your security clearance won’t be negatively affected.
Being in the military can be difficult at times, and so can filing for bankruptcy. By knowing your rights as a military member, you can make it through the bankruptcy process with minimal hassle while protecting your status as a service member.