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Veterans Bankruptcy Attorney

Helping Veterans Secure Debt Relief Nationwide

It can be frighteningly easy to fall behind on your bills and become buried in overwhelming debt. One unexpected injury, illness, or loss of income can jeopardize your financial stability and put you in a difficult position, especially if you are a Veteran largely relying on disability benefits or combat-related injury compensation. Before long, you may be in danger of losing your home or being sued by your creditors.

As a Veteran who has sacrificed so much for your country, you deserve a second chance at a fresh financial future. The Veterans Advocacy Law Group a service-disabled Veteran-owned law firm, is here to make that possible. Our national Veterans bankruptcy attorneys brings compassion and conviction to our practice, and we will leverage our extensive resources to get you the relief you need. We are passionate about helping Veterans get back on their feet, and we are committed to helping you defeat debt, no matter how dire your financial circumstances may seem. 

Contact us online or call (888) 680-9612 to request a free case evaluation. We provide our legal services in English and Spanish.

What Is Bankruptcy and Why Should I Consider Filing?

Bankruptcy is a legal process that allows individuals and businesses to protect family and company assets from being seized by creditors. Completing the process can facilitate the elimination of qualifying debts, and it can also be used to save a home threatened by foreclosure or a financially struggling business. 

Note that not all debts can be discharged or reduced through bankruptcy proceedings. For example, most tax debt and student loan debt cannot be wiped out.

Bankruptcy may seem intimidating, but it is not something you should fear. Bankruptcy facilitates new beginnings by giving individuals and businesses a “second chance” at success. Many business owners use bankruptcy to strategically remove crushing debt loads and sever unprofitable components of an otherwise sound company. On an individual level, bankruptcy can alleviate the constant stress and worry that comes with being unable to make debt payments. Many bankruptcy filers feel a great sense of relief when their case is over. 

Bankruptcy is not necessarily right for everything, but it can be a powerful solution in certain scenarios. Our national Veterans bankruptcy attorney can assess your circumstances and walk you through how filing may be able to help you.

Overview of Filing for Bankruptcy as a Veteran

While bankruptcy can be a complex and challenging process, veterans facing financial difficulties have specific options and considerations to take into account.

Types of Bankruptcy

There are different types of bankruptcy, but the two most common ones for individuals are Chapter 7 and Chapter 13 bankruptcy.

  • Chapter 7 bankruptcy: Also known as liquidation bankruptcy, Chapter 7 involves the liquidation of non-exempt assets to repay creditors. However, certain assets, such as a primary residence, personal belongings, and veterans' benefits, may be protected from liquidation.
  • Chapter 13 bankruptcy: This form of bankruptcy involves creating a repayment plan to pay off all or a portion of your debts over a three to five-year period. It allows you to retain your assets and establish a manageable payment schedule.

Bankruptcy Protections for Veterans

Veterans are entitled to specific protections and benefits when filing for bankruptcy, including:

  • Exemption of veterans' benefits: Under federal law, certain veterans' benefits are exempt from being considered as part of your bankruptcy estate. These benefits typically include disability compensation, pension payments, education assistance, and grants for disabled veterans. This means that your veterans' benefits are protected from being taken to repay creditors in a Chapter 7 bankruptcy.
  • Means test considerations: The means test is used to determine if an individual qualifies for Chapter 7 bankruptcy. For veterans, certain disability benefits received while on active duty are excluded from the means test calculation, potentially making it easier to qualify for Chapter 7.
  • Repayment considerations: In a Chapter 13 bankruptcy, your veterans' benefits are generally considered part of your income and are factored into the repayment plan. However, these benefits are still protected from being taken by creditors.
  • Military service considerations: If you are currently on active duty or recently served in the military, the Servicemembers Civil Relief Act (SCRA) provides additional protections, such as a temporary suspension of bankruptcy proceedings or interest rate reduction.
    • Temporary suspension of bankruptcy proceedings: If you are on active duty or recently served in the military, you may be eligible for a temporary suspension of bankruptcy proceedings. This can provide relief by allowing you to focus on your military duties without the stress of ongoing bankruptcy proceedings.
    • Interest rate reduction: The SCRA limits the interest rates that can be charged on certain debts incurred prior to military service. This reduction in interest rates can help alleviate financial burden and make debt repayment more manageable.

Preparing for Bankruptcy

Before filing for bankruptcy, you should take the following steps:

  • Seek legal advice: Consult with a veterans bankruptcy attorney who has experience working with veterans. They can guide you through the process, help you understand your rights, and ensure your benefits are protected.
  • Complete credit counseling: Prior to filing for bankruptcy, you must complete credit counseling from a government-approved agency. This requirement is applicable to all bankruptcy filers, including veterans.
  • Organize financial documents: Gather all relevant financial documents, including income statements, tax returns, bank statements, and a list of your debts and assets. This information will be necessary when completing the bankruptcy forms.

The Bankruptcy Process

Filing for bankruptcy involves several steps including:

  • Filing the petition: Your bankruptcy attorney will help you prepare the necessary paperwork, including the bankruptcy petition, schedules, and other required documents. These forms will provide details about your financial situation.
  • Automatic stay: Once your bankruptcy petition is filed, an automatic stay goes into effect. This prevents creditors from pursuing collection actions, including foreclosure, repossession, wage garnishment, or harassing phone calls.
  • Meeting of creditors: You will be required to attend a meeting of creditors, also known as a 341 meeting. This is an opportunity for the trustee and your creditors to ask you questions about your finances and bankruptcy petition.
  • Discharge of debts: If your bankruptcy case proceeds without complications, you may receive a discharge of your qualifying debts. Chapter 7 bankruptcy typically provides a quicker discharge than Chapter 13.

Post-Bankruptcy Considerations

After your bankruptcy is complete, it's important to focus on rebuilding your financial health. Some ways to rebuild that financial health include:

  • Budgeting and financial planning: Develop a realistic budget and financial plan to manage your income and expenses effectively.
  • Reestablishing credit: Although bankruptcy impacts your credit score, you can start rebuilding it over time. Consider obtaining a secured credit card or small loan and make timely payments to demonstrate responsible credit behavior.
  • Utilize financial resources: As a veteran, you may have access to various financial resources and benefits, such as job placement assistance, educational programs, and financial counseling services. Explore these options to aid your recovery.

If you or are experiencing financial hardship, you have options. Our national Veterans bankruptcy attorneys is familiar with the laws in each state and will work to get you the relief you need. Our team will assist you throughout each stage of the filing process and provide the tenacious advocacy you need to make the most of your filing.

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