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Military Families Military Families

Filing for bankruptcy

Anonymous
Posted by Anonymous
  • 27 Replies


My husband is the Active Duty Army-man and, for now, I'm the stay-at-home mom. We're currently stationed overseas.  We've been struggling for the past three years to get rid of bad debt and credit issues since 2012.. Our SOL(Statute of Limits) has run out to get things removed from our credit for fraudulent and incorrect reporting/practices by collectors and lenders. We've done/tried everything from letter writing to calling all hours of the day and night to lawyers and nothing seems to be working! Sadly, we've come to our last resort, filing bankruptcy at ages 23 & 25. We've come a LONG way (50,000.00 in debt) to now (20,000 in debt) . I've JUST found out I'm being sued for $8,000 for a vehicle accident in 2009. We have NOTHING in a savings account, not even a couple pennies, and we literally survive paycheck to paycheck averaging(for a family of three) 200.00/month after all the bills are paid. Our 3yr old is only getting bigger, brighter and older!!
My Question:
1) As an A.D. military family, what are our options to filing bankruptcy?
2) What are the pro's and con's to filing while in the military? (I've been told some pretty disturbing things, like the army keeping all our money to pay off the *listed* accounts in bankruptcy and then only providing what they think is enough for us to live on. Or we're not eligible to file anymore because of our military current military service.... Just as an example)
I'm a smart young woman, but not smart enough to know the ins and outs of filing bankruptcy while in the military... If it's even an options to us any more because of military service! We're still newbies to the military so we're still learning our way around. SOMEONE PLEASE HELP!!!!

Posted by Anonymous on May. 7, 2014 at 2:21 PM
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Replies (1-10):
barrelracer1699
by Chel on May. 7, 2014 at 2:29 PM

I don't know but depending on his job it could cause a lot of problems. 

Anonymous
by Anonymous 2 on May. 7, 2014 at 2:30 PM

Huh? There is no statute of limitation to try and remove incorrect info on your credit reports.

sbranom
by Member on May. 7, 2014 at 2:30 PM

I don't have an answer for you, but recommend talking to a Financial Readiness person at your ACS. They can probably give you the best info. 

chrlstoncharmed
by Melissa on May. 7, 2014 at 2:30 PM

There is no SOL on having items removed from your credit report. There is a SOL on what can be reported by creditors. 

We recently had major success with a goodwill letter to a creditor, but as I was talking to the woman working on our files, she asked why we had struggled so much and why we hadn't called and let them know that DH was AD. She said they could have re-written the debt under SCRA. We were completely unaware of that option. So, perhaps something for you to look into.

illogicalkat
by Member on May. 7, 2014 at 5:07 PM

Go to the Family Service Center/Family Support Center, pronto. Speak to the financial advisors there. Don't file bankruptcy just yet. There might be ways out of it, that you really aren't aware of yet.

Really, don't file for bankruptcy without speaking to anyone and everyone through base support services. Your husband could lose his security clearance, which is a huge deal for a good many jobs.

3xangel
by Member on May. 7, 2014 at 5:09 PM
This

Quoting sbranom:

I don't have an answer for you, but recommend talking to a Financial Readiness person at your ACS. They can probably give you the best info. 

Anonymous
by Anonymous 2 on May. 7, 2014 at 5:24 PM

I would never file bankruptcy. There are too many resources available to military members to help them dig themselves out of desperate situations like this. I agree with speaking to someone at ACS or within dh's Co who can deal with creditors directly. Bankruptcies do not drop off your credit reports for 7-10 years.

I would also go to annualcreditreport.com and pull my credit reports from all three credit bureaus for free (if you haven't done so within the past year already) and dispute any inaccuracies online. It's easy to do.

darbyakeep45
by Darby on May. 7, 2014 at 6:50 PM

Good luck!

DvlDogWfe
by Stella on May. 7, 2014 at 7:32 PM

I agree about NOT filing just yet. If you are having money issues now, filing bankruptcy could possibly make things worse. Like others have said, your husband will lose his security clearance and that is a BIG factor once re-enlistment time comes. I would speak with the financial advisors on base  and see what they can do to help you.

SusanD
by Silver Member on May. 7, 2014 at 8:00 PM
1 mom liked this
I know it can jeopardize his ability to get or keep a security clearance. Certain jobs require a security clearance to continue to be in that MOS.
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