We Provide Bankruptcy Help for Military Members

As a provider of bankruptcy help, we find that there is a lot of confusion surrounding whether or not military members can file for bankruptcy.  It is commonly thought that those serving should be in a stable financial situation, pay their bills on time, and not have any direct financial issues.  This would be wise considering the situation these men and women are in, especially during deployment.  However, this is not always the case as many members of the military actually have more expenses due to relocating their families, caring for properties while they are away, etc.  With this in mind, it can be easy for military families, just like civilian families, to find themselves facing financial hardship.

If this sounds like you – we can help.  Members of the military have the same legal rights to file bankruptcy that civilians have.  In fact, thanks to the Service Member Relief Act, military members can have some added benefits such as disabled veterans not needing to take the Chapter 7 means test.  The one thing to consider prior to filing is where you are trying to go in your career and whether or not you will need a high-security clearance.  If that is the case, let us know so that we can discuss all of your options.  Bankruptcy may harm your ability to get high-level clearances so we will want to go over this in detail. 

For most military members, the main goal is to have their family financially secure and stable.  With a regular paycheck, mountains of debt can be the one thing that stands in the way of achieving that dream.  This is where filing bankruptcy can be extremely helpful.  While providing bankruptcy help, we will start by learning about the types and amount of debt that you have, including what your payments are.  We will then want to know about your income and family expenses so that we can determine if you should have any funds left over to make debt payments.  If you do, that’s okay.  You may still qualify for bankruptcy. 

There are two main types of bankruptcy that an individual can file.  Chapter 13 is a reorganization that allows you to pay your creditors a portion of what you owe them.  In this scenario, we would work with you to determine how much money you have to allocate towards debt repayments after your bills and expenses like groceries and gas have been accounted for.  Next, a repayment plan would be proposed that states how many years you would be making this debt payment.  If approved, at the end of this term any remaining debt would be wiped out.  This allows you to pay something without having your family suffer on a monthly basis. 

As a provider of bankruptcy help, we can also help you to file a Chapter 7.  In this situation, your debts would be wiped out entirely.  It is important to note, however, that if you want to keep an asset like a home or car that has a loan on it, you will need to continue making those payments.  If you are in the military, or a civilian, call us to discuss your situation and which type of bankruptcy is right for you.

If You Need Bankruptcy Help Here are the Guidelines You Need to Meet Under BAPCPA

We offer bankruptcy help to families throughout California.  It is common for clients to ask us if they will qualify given that the bankruptcy laws changed a few years ago.  In 2005, the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) was passed at the federal level and now anyone that wants to file needs to meet those guidelines in order to do so.  There are multiple components to this legislation.   It aims to protect consumers by educating them and better prepare them to manage their finances, take discretion away from judges, and protect creditors by making sure people aren’t constantly filing for bankruptcy.  We have found that most of our clients still qualify under the new guidelines.  

Here is what you need to know:

Time Delays: If you have filed bankruptcy in the past, there are rules for how long you need to wait before you can file again.  This can range from two years to eight years, depending on the type of bankruptcy filing you did before.  We can review your case and let you know if you have waited long enough. 

Credit Counseling: Before you are allowed to file for bankruptcy you now need to take a mandatory credit counseling class.  This can be done online 24/7 or over the phone and only costs around $50.  It takes an hour, so this isn’t much of an inconvenience.  If you can’t afford a class, they have to let you take it for free. If you have more questions about the course, call us for bankruptcy help. 

Means Test: Before, a judge had the discretion to determine if you should qualify for bankruptcy based on your income and expenses.  Now, there is an eight-page document that needs to be filled out that uses the income you earned over the past six months and includes mandatory deductions.  It also has a provision for qualifying under the median household income guidelines.  In Riverside, CA the average household income is $57,096 according to the U.S. Census Bureau.  This means that most families in the area would qualify since a couple with four children only needs to make less than $80,910.  This has made it easier for most families to qualify and for those that make more than the median income; they can still qualify by using the standard deductions. 

Debt Management: If your bankruptcy gets approved, you have to participate in a debt management course. This course teaches how to manage finances and debt payments so that going forward you are less likely to need to file bankruptcy again.  We have found that people, who seek bankruptcy help, generally like this course because it provides tools they can use later on and most of our clients want to use this as a fresh start that doesn’t have to be repeated.

We understand that the bankruptcy laws can be confusing and will help you to successfully navigate through them.  For more information or a consultation, give us a call.