If you are currently in the military and your debts have risen to the point where you cannot see a way to ever pay them off, you have probably considered the possibility of declaring Chapter 7 bankruptcy. Given that 596,867 people initiated that action in 2015, it is obvious that the option to remove almost all debt without the need to make financial reparations appeals to many individuals. Therefore, it is a good idea to be aware of the important information provided below when you are ready to get your second chance for an improved financial future.

Your Income Will Impact Your Ability To Participate In A Chapter 7 Bankruptcy

One of the criteria for being able to declare bankruptcy is your income. Although bankruptcy is an option provided by the federal government, the income limits are often determined by the state in which you live. If you have not lived in your home for at least two years, you might need to qualify for your bankruptcy based on the income limits of your previous state. The same is true if your state of legal residency is another state. 

However, some states allow you to declare bankruptcy if you qualify to do so with the financial limitations of their state, or you can opt to declare Chapter 7 by qualifying under federal income guidelines. Since one is often higher than the other, you may still be able to get a new fresh start, even if at first your income seems too high. Therefore, it will behoove you to speak with a bankruptcy attorney in your state to determine how you should proceed with your bankruptcy application. 

When Stationed Overseas, You Can Still Declare Bankruptcy...But It Will Be More Challenging

As a member of the military, it only makes sense that you may need to declare bankruptcy at a time when you are not stationed in the United States. In that instance, it may be necessary to entrust someone you know in the United States with your power of attorney, or POA. That document gives them legal permission to take care of your financial affairs, up to and including filing for bankruptcy.

It is important to note that the person filing for Chapter 7 on your behalf may need to attend any and all court appearances for you. As a result, it is best to be sure that the person doing you that enormous favor will be able to follow through with all of the requirements for your bankruptcy application, even though the process can be time-consuming.   

In conclusion, millions of people have sought and received a clean financial state by participating in a Chapter 7 bankruptcy. If you are an active-duty member of the military and know that your financial future will not improve without this type of assistance, it is a good idea to speak with a bankruptcy attorney as soon as possible to determine what your options are.