Military Bankruptcy Myths in Texas that Won't Go Away

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    MILITARY

    BANKRUPTCY MYTHS THAT WONT 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 Familys 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 doesnt have to be that way.

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

    being considered. Its 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, youre 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 its

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

    too its 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 shouldnt have any problems filing a bankruptcy or the means

    test if we file your case.

    NEW START

    Filing for bankruptcy isnt 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 theyll not only lose their homes and cars, but that

    theyll 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 its 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 thats 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

    cant be discharged in a bankruptcy is just wrong. The vast majority of those

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

    dont 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 nations military hesitate is because

    theyre not sure what happens if theyre deployed before they can complete the

    bankruptcy process. Your bankruptcy

    attorney can help put important

    protections in place so that its not a

    problem or you. Your decision to choose

    the military as a career shouldnt keep

    you from the same rights as other

    Americans. An experienced bankruptcy

    lawyer can protect your rights even as

    youre 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 familys 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