Bankruptcy Issues Related to Military Personnel, Federal Contractors and Federal Employees

Many armed forces servicemembers and department of defense civilian employees and contractors face the same financial issues related to loss or reduction of income, divorce, medical bills, car repossession, foreclosure, and overwhelming debts faced by non-military civilians. However, service in the various branches of the armed forces raises additional issues in the event the individual seeks bankruptcy relief. The United States Army maintains a substantial presence at the Fort Gordon Military Installation located in Augusta-Richmond County, Georgia. Many of the servicemembers from all branches of the military as well as private employees and contractors live in the surrounding counties of Augusta-Richmond County, Columbia County and Burke County. Because our firm has offices located in Augusta, Georgia and Evans, Georgia, we serve many military clients and have resolved significant issues related to bankruptcy in military service.

Many military servicemembers have questions regarding the effect of filing bankruptcy on their federal security clearance. Active duty military personnel, department of defense contractors and civilian employees, and employees of the surrounding nuclear facilities at the Savannah River Site and Plant Vogel are required to obtain and maintain security clearances as a condition of their employment. For any individual seeking to file bankruptcy who is concerned regarding his ability to obtain or maintain a security clearance, we review each case individually to provide information specific to their facts and circumstances.

In addition to raising concerns of security clearance, active duty service members are also concerned about their need to attend hearings and be present to sign documents. Any military service members concerned with these requirements can see our information regarding existing clients under the respective case filing (Chapter 7, Chapter 11, or Chapter 13) to review the requirements for court attendance after filing a bankruptcy petition.

In addition to seeking relief under the bankruptcy code, military servicemembers are entitled to relief under the Servicemembers’ Civil Relief Act (SCRA). The SCRA provides relief to active duty servicemembers in addition to the provisions of the Bankruptcy Code. When discussing both bankruptcy and non-bankruptcy options with perspective military clients, we will also review the clients’ situations in reference to the SCRA to determine whether it can provide needed relief instead of filing bankruptcy, or whether we can utilize the provisions of the SCRA in addition to the relief sought under the bankruptcy code.

Contact the Boudreaux Law Firm today to schedule your initial consultation.