Can You File Bankruptcy While on Active Duty?

Sometimes I get questions from military personnel who wonder whether they can file for bankruptcy while they’re on military duty. The fact of the matter is that yes, you can file for bankruptcy despite the fact that you are on military duty. However, you should know that you have another protection under the law because you are serving our country which is know as the Service Member’s Civil Relief Act.
You do have certain protections while you are on active duty with the military services. That is you are protected from lawsuits, garnishments, or any foreclosure during that time period. If, however, you do decide that you wish to go forward with filing a Chapter 7 Bankruptcy Case, or any type of bankruptcy case, you should be aware that if your involves security clearance, filing the bankruptcy could jeopardize your security clearance. One other advantage that you have is that if you are on active duty, you may not be required under the bankruptcy laws to fulfill the requirement of the pre-filing bankruptcy course online.
Another advantage that you might have if you file bankruptcy while you are on active duty would be an instance where you are a reservist, but now you’ve been called to active duty. Normally, anyone who files a bankruptcy case, has to meet the income thresholds in order to be able to follow the bankruptcy. That is if you make too much income, you just might not qualify for Chapter 7. However, if you’ve been a reservist, and now you’re activated, and you’re on active duty with the military then that requirement no longer applies to you. You do not have to worry about whether you’ve made too much income to file for Chapter 7 relief.
If you have questions about what your rights are while on duty in serving our country as a member of the military, and whether you should or you shouldn’t file bankruptcy, please call my office at 770-792-1000.