For example, while foreclosures have gone up over the last 3-5 years, the rate of foreclosures for military families is four times the average rate. Many attribute the root cause as the emotional and financial stress of war on the armed forces as well as the high divorce rate and job relocation. There's also the issue of insensitivity and banks not following the law by charging excessive fees as outlined in the law suit settled by JP Morgan Chase in 2012. The other banks named in the suit which started in 2006 by the government have yet to settle.
What to do if you are facing financial difficulty and you're serving in the military?
First of all, the law allows the same rights and protection to military members as they do civilians. To know whether bankruptcy is the right thing to do and the process, it's best to seek the advice of an attorney. A service member should file for bankruptcy as a last resort to protect their assets from creditors. For those members serving overseas a power of attorney might be needed to file the bankruptcy stateside.
Bankruptcy and military career
Filing for bankruptcy can be damaging to a military career. Service members are routinely asked to complete background checks with questions related to whether or not they have any 90 plus day delinquencies, wage garnishments or judgements. Third party agencies employed by the government to do background checks for security clearances also do credit checks. Not having a clean financial record can deny a service member access to classified information.
According to Daniel Castaneda of the San Diego based Arizmendi Law Firm "Active duty men and women should talk to an attorney before filing bankruptcy. They owe it to themselves and their military careers. At Arizmendi Law Firm we offer a military discount as a measure of our appreciation for their service." 619-231-0460
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