Military member needing info about Bankruptcy?

Question

My husband has been in the military (navy) for 9+ years with out any issues until recently. We have found ourselves in some huge financial issues. I was diagnosed with cancer and lost my job and everything is getting out of hand. Our only way out at this point is to file bankruptcy. We have tried payment arrangements etc with no luck. He does have a clearance and has already been counseled because of the issues at hand. Please understand that the bills are medical, items from years ago we didn't know about and 2 current loans. My question is can he cross rate? Will he for sure lose his clearance? Is there any steps which we should take to properly do this?

Answer 1

You need to make an appointment with you JAG office right away - they have the lawyers who can answer your questions and assist you through the process.  Good luck to you.

Answer 2

I don't have any advice for you, but I do want to tell you I'm sorry you're going through so much. I'm a military wife as well and being that is hard enough, mix cancer and what you're going through in and its terrible. I hope things get better for you!

Answer 3

If your husband has a SECRET (or higher) clearance, filing for Bankruptcy will more than likely cause him to loose his clearance, if not already.  There should be a Credit Counseling office on base- you need to talk to them- they can make phone calls to particular people that you couldn't.  In addition, is there some sort of Navy Community Service Office on base or a Navy Emergency Relief office/branch?  I know that the Army has ACS and AER...they too can help with bills, if you qualify for assistance.  

First and foremost, as someon else mentioned, you may want to seek legal counsel.  As for the medical bills- Tri-care should have picked up the tab on some of those bills.    I am not sure how you didn't know you had medical bills..but that is another story in itself.  

Good luck!  

Answer 4

For those saying Tricare should have covered all the bills..that would only be if the family used military health facilities, had Prime and used Tricare affiliated doctors and/or did not opt to try treatments considered experimental or alternative.  Additionally, there is more to medical care than hospital costs..there is the impact of lose of income, if they needed to bring help into the home for  her care (which is not covered by Tricare) or for any children involved.  

I agree..contact JAG immediately.  One of the issues is that many states have changed the laws concerning when and how you file for bankruptcy.  It is not unusual for them to require you to work with one of the credit counseling services (JAG should be able to give you a list of reputable groups to work with) before you can file.  If you have not looked into this option, I would suggest trying that first.  

Additionally, your husband should speak with his command.  If you do file, he will most likely loose his clearance.  They can answer his questions on what will happen to him career wise...can he move into another job in his career field that doesn't require the clearance, can he cross train, etc.

And finally, find out what your consumer rights are in your state.  Many states have laws that will keep creditors from being able to harass you with repeated calls.  Find out what those laws are and how to inform your creditors that you are invoking those rights.    

Answer 5

For starters, go to JAG.  I don't know about the Navy, but the Army has an Army Emergency Relief organization.  

I don't really understand how these bills can be medical if you are married to a servicemember.  Tricare should cover almost all your medical expenses.  The bigger problem is the lack of income.  MAny mortgage and auto loans has a disability/ unemployment protection program associated with them.  You may be able to use that to waive the payments on those loans.  

If they are medical bills from several years ago, you are fine.  They cannot come after you for them after a certain amount of time.