Upload
erin-shank
View
62
Download
0
Tags:
Embed Size (px)
Citation preview
1
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
2
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.
3
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
4
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
5
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.
6
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.
7
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