The Armed Forces and Bankruptcy


As a member of the United States military, the standards for filing for bankruptcy are different than for civilians. In particular, there are certain protections offered to service members that would not otherwise be permitted for anyone else. The lifestyle of a member of the military often includes problems such as a lack of a permanent address, especially if deployed, potential combat hazards, and a more structured lifestyle.

The most obvious difference between a service member filing for bankruptcy and a civilian doing the same comes in the multiple protections provided by the Service Members Civil Relief Act. According to this law, which aims to give those in the military assistance with the stress and penalties of bankruptcy, those involved in the armed forces are granted protection from legal actions such as foreclosure and wage garnishment if they are deployed.

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In addition to what the Service Members Civil Relief Act provides, there are two different methods through which a person in the military can find assistance with his or her bankruptcy. If in an active combat zone while deployed, a debtor clearly has no reason or time to deal with issues like credit counseling. These situations are explicitly covered by the Bankruptcy Code, allowing service members to skip this requirement.

If a debtor is injured in the line of duty, it is possible that his or her injuries may be taken in mind by bankruptcy trustees. Similar to deployment in a combat area, those injuries may permit a soldier to skip past the credit counseling sessions required by BAPCPA, speeding up the bankruptcy process. In these situations, trustees may be more lenient to soldiers who have been injured while defending American interests, as issues like credit counseling seem significantly more trivial.

For more information concerning bankruptcy and how members of the military may go through a different process, contact a bankruptcy lawyer.


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