Is Bankruptcy An Option
In some cases, filing for bankruptcy is going to be the best option to get control of a rough financial situation. It is possible for military members to file for bankruptcy and doing so can make it possible to maintain ownership of a home and other possessions.
There are some instances in which filing could interfere with security clearances, so it is important to understand your situation before moving forward. It might be better for you to take action sooner rather than later, if your goal is to one day be in a position in which you need clearance. On the other hand, your rocky financial situation and potential bankruptcy could prevent you from pursuing certain opportunities, so make sure you gather all the information you need to make an informed decision before filing for bankruptcy.
For more information on how the US government handles security clearances, visit the website for the US State Department.
How Filing For Bankruptcy Will Affect Your Job Applications
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Reservists And National Guard Members Called To Active Duty May Be Excluded From Means Testing
Members of the National Guard or a reserve unit of the Armed Forces who were called to active duty or performed a homeland defense activity for a period of at least 90 days after September 11, 2001 are excluded from Chapter 7 means testing requirements while on active duty and for 540 days afterwards.
However, this exclusion is usually temporary. You are still required to complete the means test form no later than 14 days after your 540-day exclusion period ends, unless time has already expired for filing a motion to argue a means test presumption during your exclusion period.
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Security Clearance & Bankruptcy Considerations
Losing your security clearance means losing your job in most cases. Filing a bankruptcy means saving your job, eliminating the debt your have been stressing about, reestablishing your credit and a less stressful more financially rewarding life. The security clearance adjudication process looks at the whole person or totality of circumstances when weighing whether to issue or reissue a security clearance. Resolving your financial issues alone does not guarantee a security clearance. If you have multiple issues that raise concerns about your access to classified information you may still be denied a clearance. As a former CIA officer, attorney John G. Merna is personally familiar with security clearance issues and adjudication. We have helped hundreds of service members, DOD civilians employees and civilian contractors avoid the loss of their tickets due to debt. Dont wait until the security office is processing your application or reinvestigation before you take steps to resolve your debt.
Assisting Veterans And Active Military Members With Bankruptcy In Irvine And Surrounding Areas
Whether youre a veteran or active-duty military, you should not have to face the pressures of your bankruptcy case alone. Youre an honored service member who has made sacrifices for this country! Its only fair that you attain a clean slate and a new lease in life. However, the bankruptcy process for military members is different than it is for civilians, which is why you will need legal assistance.
At McFarlin LLP, ourOrange County bankruptcy lawyers have plenty of experiencing handling all types of consumer bankruptcies, including Chapter 7 and Chapter 13. Please let us handle your legal and financial matters in your stead.
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Your Bankruptcy Filing Could Affect Your Search For A New Job
Are you planning on looking for a new place of employment? If youre interested in working for a federal, state or local government agency, filing for bankruptcy wont present a problem its not a factor that can be legally considered during the hiring process.
Private employers arent bound by the same rule. A bankruptcy filing could affect your ability to land a new job in the financial sector or one that involves dealing with money. That said, speaking candidly when youre being interviewed can be enough to outweigh any negative views others may have about your bankruptcy.
If you have questions or concerns about filing for bankruptcy, the Law Office of Davis & Jones, P.C., is here to provide expert answers and advice.
Our highly skilled legal team has a combined 40 years of experience in bankruptcy law. We can help you down the road to a better financial future. We offer free consultations to residents of the Salt Lake City metropolitan area, the Wasatch Front and the surrounding Utah communities. To speak with a seasoned Utah bankruptcy attorney, contact our office today.
If you plan to file for bankruptcy, you might be worried about the effect it could have on your employment. For instance, many people wonder:
- Will an employer find out about a Chapter 7 or Chapter 13 bankruptcy?
- Can an employer fire an employee who has filed for bankruptcy?
- Is it legal to pass over a job applicant due to a bankruptcy filing?
Dont Delay Get A Fresh Start
We understand. Debt is a burden that can make you feel weighed down, stressed, and lost. You want to get rid of it because its interfering with your personal life and possibly your military career, but you dont know how. Fortunately, theres a way! However, it involves you taking the first step and consulting with an attorney. Dont let your debts and your fear linger.Contact McFarlin LLP now!
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Debt Management And Credit Counseling Programs
If youâre active military or a veteran, you may qualify for free services. Nonprofit credit counselors help you understand all of your debt relief options from bankruptcy to a debt management plan. When selecting a credit counselor, make sure theyâre accredited by either the National Foundation for Credit Counseling or the Financial Counseling Association of America .
If you just need help getting your debt payments under control and not missing any payments, a debt management plan may help. Under such a plan, you make a monthly payment to the credit counseling agency that then distributes payments to your creditors. Accredited credit counseling agencies usually offer a lower interest rate and help you pay off your debt over three to five years. Note that this isnât the same as for-profit debt settlement services, which are often ripe with scams. Keep in mind that you can do any of the paid services that debt management or debt settlement companies offer.
Your Priority: Rebuild Your Credit
The most important thing you must do in any case is rebuild your credit.
The first step you should take after filing is to pull credit report and check for any errors that may have an impact on your score outside of the bankruptcy. If you notice any discrepancies, you can dispute them online or in writing. Next, make sure you make all of your current payments on time. Any late payment, no matter how minor, during this time period could be cause for a lender to deny you as high risk.
To actively begin rebuilding your credit, there are several small things you can do to make a huge impact:
1. Apply for a savings-secured loan from your local bank or credit union. What this means is you give a set amount of money to the bank to open a savings account. The bank will then lend you that amount and freeze the savings account as collateral. Each month you make payments on your loan, that amount will be released for use in your savings account.
2. Ask a trusted friend or family member to make you an authorized user on an existing credit card account in good standing. You dont need to actually use their credit card, but the fact that you remain on the account will help build your positive credit score.
Although a bankruptcy can feel devastating, it doesnt have to derail your dreams of homeownership. If you work hard at rebuilding your credit and financial standing, and continue to meet your financial obligations, a new home will be yours in no time at all!
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Can I File If Im Being Deployed
Yes, each lawyer at Chang & Diamond here in San Diego, as well as the Bankruptcy Courts are very understanding and appreciative of our Nations Military. We can prepare case and communicate electronically. Also if your hearing date is scheduled while you are on deployment we can request a continuance or schedule a telephonic hearing.
Can You Declare Bankruptcy While Serving In The Armed Forces
Congress has established special rules for anyone in the armed forces who file for bankruptcy. If you serve in the armed forces, National Guard, or the reserves, you have the right to bankruptcy, but in Colorado, youll also need the advice and services of a bankruptcy lawyer.
Military service does not mean that youre protected from financial hardships, but nothing in the law prevents active-duty military personnel from filing a bankruptcy petition. While serving in the armed forces, you have the same rights as a regular civilian to file for bankruptcy protection.
In fact, the military prefers that you have your finances in order, even if that means that you have to file a petition for bankruptcy. Bankruptcy can get you back on your feet and provide you with a fresh financial start.
If youll keep reading, you will learn about the unique rules for bankruptcy that Congress has established for active duty service members. You will also learn why active-duty military personnel who file for bankruptcy in this state must have the advice and services of an attorney for bankruptcy in Loveland.
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Bankruptcy For Military Personnel
If you are in the military, you have the same right to file for bankruptcy relief as a civilian. In fact, active-duty military personnel and disabled veterans enjoy certain benefits over non-military bankruptcy debtors. However, filing for bankruptcy also has the potential to affect your security clearance under certain circumstances.
Read on to learn more about filing for bankruptcy if you are a member of the military.
Veterans Benefits Might Be Exempt Assets In Bankruptcy
If you receive veteran’s benefits, they might be exempt assets in your bankruptcy. If you live in a state that uses the federal bankruptcy exemption system and you choose to use the federal exemptions, then those benefits are exempt. If your state has opted out of the federal bankruptcy exemption system, then your state’s exemption laws might also protect your veteran’s benefits.
Veterans benefits will be part of the income means test to determine your eligibility for bankruptcy unless you qualify for one of the means test exemptions discussed above.
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Alabama Attorneys Serving Individuals Reorganizing Their Finances
For government employees, defense contractor employees, or members of the military on active duty, it can be particularly stressful to file for bankruptcy. Often, they are unsure how this process will affect their security clearances. The Department of Defense has guidelines related to this issue, and they include a provision about financial affairs. The concern for the government is whether a debtor tried in good faith to resolve debts or repay creditors before filing for Chapter 7 or Chapter 13. People who are worried about the effect of bankruptcy on security clearances can consult an Alabama lawyer at Grainger Legal Services.
Will I Lose My Job If I File For Bankruptcy
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Its common for people considering bankruptcy to be concerned about the impact a bankruptcy filing may have on other areas of their lives. Some of the most common concerns include the impact of bankruptcy on access to credit, how bankruptcy will affect existing property such as homes and cars, and the possibility of job loss.
Its not surprising that people already struggling with debt would be concerned about loss of income. However, for most bankruptcy petitioners, neither the bankruptcy filing nor the bankruptcy discharge is likely to affect employment. In part, thats because federal law protects most workers from being discharged because of a bankruptcy filing. In part, its because many employers never even know that an employee filed for bankruptcy protection. And, many wont care, or may even see the bankruptcy filing as a step in the right direction.
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What Are The Effects On My Career
Because the US Military require that their Personnel maintain a certain level of financial reason-ability, if a person is unable to rectify their bad debt situation they can be discharged from the Military. There are many options and services available to military families to help them get back on track. Your Command may require you to speak to professionals about financial management. Bankruptcy is only one of these options. Our experienced San Diego attorneys can educate you about your Chapter 7 or Chapter 13 bankruptcy options. We are very understanding and well versed with the Military Culture.
It is important to note that nobody from our office will contact your Command.
San Diego, California has a huge military community and also a huge cost of living. While the Military does account for cost of living here in San Diego with BAH and BAS, there may come a time when your debt has gotten out of your control. If you find yourself looking at filing a military bankruptcy please consider enlisting the services of Chang & Diamond. We have over sixteen years of experience assisting San Diegos Military personnel regain control of their finances and getting back on track.
Our law firm salutes you and thanks you for your service. Let us show our thanks by helping you maintain your finances and get out from under your bad debt.
Servicemember’s Civil Relief Act
The Servicemember’s Civil Relief Act offers special protections when a member of the military files for Chapter 7 or Chapter 13 bankruptcy. These laws were put into place to help active military members focus on their duties rather than their financial situation. The SCTA gives courts the right to stay or postpone bankruptcy and non-bankruptcy proceedings while you are on active duty. The law is able to prevent a range of proceedings during the bankruptcy process that could be detrimental to members of the military such as default judgments related to the dischargeability of a debt, obligation discharge objections, debtor examinations and collection actions that may occur after the bankruptcy proceedings have finished.
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Its Not Any Easy Story To Tell But Its Our Story
Outside of one good friend and a handful of family, nobody knows that in 2012, just a few short months after the birth of my daughter, my husband and I filed for bankruptcy. It feels good to type that and say it out loud because no matter how embarrassed we once felt, there is absolutely not one thing I regret about it happening. We needed a swift kick to realize that we simply could not continue living outside of our means. Bankruptcy saved us.
Can I Be Fired For Filing Bankruptcy
If you plan to file for bankruptcy or already have filed, you may be wondering if that decision will have any effect on your job. Can you be fired or discriminated against for filing for bankruptcy? In Ohio, the answer is no. You cannot be fired solely because you filed for bankruptcy. Your employer is also prohibited from discriminating against you concerning the terms and conditions of your employment because you filed for bankruptcy. This means your employer cannot reduce your salary or demote you solely because you filed for bankruptcy.
11 U.S.C. Section 525 provides, in relevant part, that o private employer may terminate the employment of, or discriminate concerning employment against, an individual who is or has been a debtor under this titlesolely because such a debtor or bankrupt has not paid a debt that is dischargeable under this title. The 6th Circuit Court of Appeals addressed this issue in White v. Kentuckiana Livestock Market, Inc., where it said, The Bankruptcy Code prohibits private employers from discharging bankrupt employees solely because of the employees having invoked the protection of the bankruptcy laws.
If you are contemplating filing bankruptcy or already have and need an attorney to represent you, consider contacting Laura Nesbitt of the Nesbitt Law Firm or Danielle Demming of Jump Legal LLC.
If you are looking for a bankruptcy discrimination attorney, please contact the Ohio Employment Lawyers at The Friedmann Firm today.
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Impact On Security Clearances
Many clearance denials involve financial considerations, so it is understandable to think about the consequences to your security clearance of filing for bankruptcy. In general, however, filing for bankruptcy does not automatically prohibit you from getting a security clearance or force you to lose a security clearance.
Under Guideline F, financial considerations are one of 13 criteria in the Adjudicative Guidelines for Determining Eligibility for Access to Classified Information. These guidelines are established for military and government personnel as well as anybody else who requires access to classified information to do his or her job.
The concern related to your finances is that if you owe an excessive amount of debts, this increases the likelihood you will commit an unethical or illegal action in order to get your debt paid. However, delinquent debt is of greater concern to those determining security clearance than is bankruptcy. Even more important is the cause of the debt. Some debts are unavoidable or understandable. For example, if you were saddled with enormous medical bills due to an emergency or illness, you may owe a large sum of money, but this debt says nothing about your judgment.
If you file for bankruptcy and already have security clearances, you should tell your facility security officer about the filing. It is better to be totally honest about your financial situation and bankruptcy rather than to try to hide them.