Years ago military personnel who filed bankruptcy were considered a security risk. Today the tides have changed and those who have unresolved debt are being held back from military duty. You can be the most trustworthy, loyal patriot who abides by the strictest personal code of ethics. However, if you are behind on your mortgage, car loan, or your debt to income ratio is higher than military guidelines allow, you won’t be awarded the promotions you deserve. If your current position includes security clearance and you’re in financial trouble you could be demoted or lose your job.
Unlike generations before you, filing Chapter 7 or Chapter 13 is preferable to drowning in debt.
Ultimately this will also ensure that your security clearance is secure.
In recent years, high interest rates on home loans were the leading financial problem for military employees. In the last two years the rising cost of student loans is creating a new crisis. As a result, filing Chapter 7 or Chapter 13 bankruptcy is now recognized by the U.S. federal government and your superiors as a responsible action. You are being accountable by seeking out a solution and resolving your financial issues. How you ended up in financial debt is not important, but how you get out of it is. In the eyes of the military, a person struggling with financial debt is more vulnerable to distractions, bribery, or treason than those who aren’t burdened with their finances. This doesn’t just apply to members of the military, but to civilian contractors and DoD staff as well.
Adding credibility to the military’s perception of risk is the high volume of complaints registered with the Consumer Financial Protection Bureau. According to the CFPB, creditors and debt collection agencies are targeting military employees. They use fear tactics that pressure debtors to pay making it harder for military employees to focus on their jobs. In addition, the military is reassessing the frequency of investigations in an effort to tighten security.
In the near future, evaluations to determine a person’s reliability are likely to occur more often. This means managing your debt is a serious priority for you and your military branch. Filing bankruptcy stops creditors from harassing you and alleviates your financial concerns.
In the near future, evaluations to determine a person’s reliability are likely to occur more often. This means managing your debt is a serious priority for you and your military branch. Filing bankruptcy stops creditors from harassing you. Bankruptcy also alleviates your financial concerns.
Once your debt has been discharged through Chapter 7 or you are making payments through a Chapter 13 settlement, you reduce your chances of having your security clearance revoked and increase your opportunity to be hired or promoted to an occupation that requires security credentials. Filing bankruptcy makes you a better candidate than someone of the same rank or position who has too much financial debt. Both the civilian security investigation services and the military investigation services approve of filing Chapter 7 and Chapter 13 to resolve financial problems. They see it as a favorable alternative to holding you back from new assignments and personal advancement.
Bankruptcy not only gives you the chance to rebuild your credit and eliminate stress, but it could save your job.
Mark grew up in Savannah, a city where more than seven percent of the population is employed by the military. This makes him uniquely sensitive to your situation. Contact him today!