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MILITARY

BANKRUPTCY MYTHS THAT WON’T GO AWAY

A Bit of Guidance Can Go a Long Way in Turning Your Finances Around Through Bankruptcy So that

You Can Better Protect Your Family’s Future

ERIN B. SHANK CENTRAL TEXAS BANKRUPTCY ATTORNEY

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There is no shortage of potential

problems always lurking around the

corner for military families. In most

marriages, one spouse typically

handles the majority of the

finances. But what happens in a

military family and the spouse who

covers those bases is now

deployed? Younger newlyweds also have their share of money woes, especially if

the couple is separated not long after making their vows. In fact, many have

little, if any, time to set up their households before the military spouse is

deployed, much less delve too deep into long term expectations for their

finances. And then there are the countless military bankruptcy myths that seem

to never go away.

MILITARY FAMILIES &FINANCIAL PITFALLS

"The number one issue deployed service members worry about is how they'll

communicate during the deployment about finances, child care, family decisions,

etc.," says Dr. Earl Beale, Director of the Family Support Center at Grand Forks

Air Force Base in North Dakota. Everything changes and new routines must be

found, but for those who are uncomfortable with the financial aspects of running

a household and saving for the future, it can be a double whammy as things

spiral down in short order.

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The good news is that it doesn’t have to be that way.

Being able to find accurate information is crucial, especially if a bankruptcy is

being considered. It’s the confusing advice out there that keeps many in the

cycle of worry over their finances. Here are a few of the more common military

bankruptcy myths. Once you have the facts, you’re already empowered and can

move forward with making the best decisions for you and your family.

SECURITY CLEARANCES

Many are concerned that their security clearances would be put in jeopardy were

they to file for bankruptcy protection. They wrongly believe bankruptcy ruins

their military career and prevents them from moving up. Nothing could be

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further from the truth. Not only can you restore your security clearance – if it’s

even in jeopardy - but any involuntary allotments are removed as well. In fact,

too it’s more likely that debt would jeopardize your clearance faster than filing

for bankruptcy since it can be viewed as taking a proactive path to rectifying the

problem.

MEANS TEST

Courtesy of the 2005 bankruptcy overhaul laws, a “means test” was put into

place. This is a formula used to determine if someone should file Chapter 7 or

Chapter 13 bankruptcy. In nearly every instance, disabled veterans are exempt

from the Chapter 7 means test. That said, our office is very familiar with this test

and therefore, you shouldn’t have any problems filing a bankruptcy or the means

test if we file your case.

NEW START

Filing for bankruptcy isn’t an automatic “lose everything” game changer. The

purpose of bankruptcy is, and always has been, to provide a way for Americans

to start anew. Many think they’ll not only lose their homes and cars, but that

they’ll be left with very few options moving forward. There are programs in place

to help you keep your home while also bringing you current with any payments

that are behind. One of those programs, Home Affordable Modification Program,

or HAMP, is ideal for those in military, but it’s not your only option. You can buy

a new car with interest rates that are almost certain to be lower than what you

were paying before bankruptcy. The last thing a deployed soldier wants to worry

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about is his or her family that’s struggling at home. Bankruptcy can help achieve

that piece of mind.

MEDICAL DEBT

Even after the recent changes in bankruptcy laws, the myth that medical bills

can’t be discharged in a bankruptcy is just wrong. The vast majority of those

who file bankruptcy, military and civilian alike, have medical debt. Bankruptcies

don’t restrict you from being able to discharge medical debt, credit card debt and

more.

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TIMING IS EVERYTHING

Another reason some members of our nation’s military hesitate is because

they’re not sure what happens if they’re deployed before they can complete the

bankruptcy process. Your bankruptcy

attorney can help put important

protections in place so that it’s not a

problem or you. Your decision to choose

the military as a career shouldn’t keep

you from the same rights as other

Americans. An experienced bankruptcy

lawyer can protect your rights even as

you’re protecting our country.

To learn more about military bankruptcy myths and your rights, contact our

offices today. A bit of guidance can go a long way in turning your finances

around through bankruptcy so that you can better protect your family’s future.

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About the Author

Erin B. Shank

With extensive training and 32 years

of experience helping families

throughout Central Texas, Erin B.

Shank is here to help you conquer

your financial obstacles. Whether

you need guidance and advice

regarding bankruptcy, debt

consolidation, tax debt or other

financial problems, Erin and her

friendly and qualified team can help

you find solutions that will enable

you to manage or eliminate your

debt.

Erin B Shank, PC

www.centraltexasbankruptcy.com

1902 Austin Avenue

Waco, TX 76701

(254) 296-1161

1711 East Central Texas

Expressway

Suite 107

Killeen, TX 76541

(254) 690-4110