It is far more damaging to simply let your debts pile up. Decisive actions like debt settlement or bankruptcy are clear cut solutions to your troubles. Letting your debts fester is a far surer path to garnished pay, disciplinary action, and even dishonorable discharge.
If any doubts remain, you need only read this passage from Section 525 of the United States Bankruptcy Code:
“(A) governmental unit may not deny revoke, suspend, or refuse to renew a
license, permit, charter, franchise or other similar grant to, condition such a
grant to, discriminate with respect to such a grant against, deny employment to,
terminate the employment of, or discriminate with respect to employment against,
a person that is or has been a debtor under the Bankruptcy Code solely because
the debtor has been a debtor under the Bankruptcy Code;…”
To summarize, the government (and by extension, the military) cannot commit the following acts against a person due to his or her bankruptcy filing:
- Deny employment
- Deny promotion
- Terminate employment
- Refuse to renew a license or permit
If You Do Need Bankruptcy
If we discover that you do need bankruptcy, then we will work to defend you through the entire process to try and keep as much of your military standing as possible. We will also work to ensure that your finances are handled with care. The number one challenge of bankruptcy is how much those who have to file aren’t aware of the details of it.
Here’s a quick rundown of the two most common types of bankruptcy and what each means for you.
Chapter 7 bankruptcy is the most common kind there is. Those who have to file for bankruptcy through Chapter 7 are usually in a situation where there is no possible way they can pay off their debts. This happens a lot for people that lose a source of income and can no longer support their lifestyle as a result of it.
When filing for Chapter 7 bankruptcy, your assets will be liquidized and used as payments for your debts. Once those assets have been liquidated, and you have completed the proper counseling courses, your debts will be removed.
Chapter 13 bankruptcy is not as common as Chapter 7 but still exists as an option. With Chapter 13 bankruptcy, you typically have an income where it is possible to pay off your debts, but you have too many to do it in a reasonable amount of time. When filing for Chapter 13, your debts will be removed after paying them off.
Your debts will be rolled into a lump sum that you then are able to make monthly payments on over an allotted period of time. Once those debts have been paid, you will be free of debt.