Yes, you can file for bankruptcy while serving in the military. Active duty service members, reserves, and National Guard members all have the right to file for bankruptcy protection under federal law.
Military service doesn’t disqualify you from debt relief, but it does add some unique considerations to the process. Your military income, housing allowances, and deployment status can affect your bankruptcy case. The type of bankruptcy you qualify for and how quickly your case moves through the courts may also differ from civilian cases.
Military families face financial challenges that civilians often don’t encounter – frequent moves, deployment expenses, family separation costs, and irregular income patterns. These factors can make it harder to manage debt, even with steady military pay.
Filing for bankruptcy won’t hurt your security clearance or end your military career. Federal law protects service members from discrimination based on bankruptcy filings. However, timing matters. Some procedures work differently when you’re deployed or stationed overseas.
If you’re struggling with debt while serving, we can help. An Oklahoma bankruptcy lawyer at Convenient Bankruptcy can walk you through everything you need to know about filing bankruptcy as a service member, including which chapters you can file, how military benefits are treated, and what protections you have under the Servicemembers Civil Relief Act.
If debt is keeping you awake at night, it’s time to explore your options and speak with a bankruptcy attorney at our law firm who understands military cases.
Which Bankruptcy Chapter Should Military Members Choose?
Most service members qualify for either Chapter 7 or Chapter 13 bankruptcy. Chapter 7 wipes out most unsecured debts in about four months, while Chapter 13 creates a three-to-five-year repayment plan.
Your military income determines which chapter you can file. The bankruptcy means test looks at your average income over the past six months. Basic pay, housing allowances (BAH), and food allowances (BAS) all count as income. However, combat pay and family separation allowances may be excluded from the calculation.
Service members often prefer Chapter 7 because it’s faster and eliminates debt completely. If your income is too high for Chapter 7, Chapter 13 might be your only option. Chapter 13 can also help you catch up on missed mortgage or car payments while keeping your property.
How Military Benefits Are Protected in Bankruptcy
Oklahoma bankruptcy law protects most military benefits from creditors. Your military retirement pay, disability compensation from the VA, and survivor benefits cannot be seized to pay debts. This protection exists even before you file for bankruptcy.
Housing allowances and food allowances receive the same protection as regular wages in Oklahoma. Creditors cannot garnish these payments, and bankruptcy trustees cannot take them to pay creditors.
Military life insurance proceeds and death benefits are also protected. If you receive these benefits, creditors cannot touch them during or after your bankruptcy case.
The Servicemembers Civil Relief Act and Bankruptcy
The Servicemembers Civil Relief Act (SCRA) provides additional protections for active duty personnel filing bankruptcy in Oklahoma. If you’re deployed or have orders for deployment, you can request a stay of your bankruptcy proceedings.
This means your case can be put on hold until you return from deployment and can participate fully. The court will typically grant a 90-day stay, which can be extended if needed.
The SCRA also protects you from default judgments if creditors sue you while you’re deployed. These protections apply whether you’re stationed in Oklahoma or deployed overseas.
Filing Bankruptcy While Stationed in Oklahoma
Oklahoma is home to several major military installations where service members and their families face unique financial pressures. Altus Air Force Base in Jackson County, Tinker Air Force Base in Oklahoma County, and Vance Air Force Base in Enid serve thousands of military families.
Service members at Fort Sill in Lawton deal with frequent training rotations and family separations. These situations can create unexpected expenses and income gaps that lead to financial problems.
If you’re stationed at any Oklahoma military base, you can file for bankruptcy in the federal district where the base is located. Oklahoma has three federal judicial districts: Eastern, Northern, and Western. Most major bases fall within the Western District of Oklahoma, which includes Oklahoma City and Tulsa.
Common Questions About Military Bankruptcy in Oklahoma
Will bankruptcy affect my security clearance? No. Federal law prohibits the military from taking adverse action against service members solely because they filed bankruptcy. Your clearance investigation looks at how you handle financial problems, not whether you have them.
Can I file if I’m deployed? Yes, but timing matters. You can file bankruptcy papers before deployment or have someone file for you with a power of attorney. If you’re already deployed, the SCRA may allow you to delay proceedings until you return.
What happens to my military housing? On-base housing is provided by the military, not owned by you, so bankruptcy doesn’t affect it. If you own a home off-base, you may be able to keep it depending on your equity and which chapter you file.
Are my spouse’s debts included? In Oklahoma, you can file bankruptcy individually even if you’re married. However, if you have joint debts or community property, your spouse’s finances may still be relevant to your case.
Getting Help with Military Bankruptcy in Oklahoma
Military families in Oklahoma face unique financial challenges that civilian attorneys may not understand. Frequent moves between bases like Altus AFB, Tinker AFB, and Fort Sill can disrupt financial planning. Deployment cycles affect family budgets differently than regular job changes.
When choosing a bankruptcy attorney in Oklahoma, the attorneys at Convenient Bankruptcy understand military pay structures, deployment schedules, and the protections available under the SCRA. Many attorneys in Oklahoma City, Tulsa, and Lawton work regularly with military clients from nearby bases.
Don’t let debt problems hurt your military career or family life. Oklahoma bankruptcy courts handle military cases every day, and our experienced attorneys can guide you through the process while protecting your benefits and security clearance.
Call Convenient Bankruptcy in Oklahoma at 405-639-2099 to schedule a consultation.
Information about Convenient Bankruptcy
Convenient Bankruptcy, founded by Attorney Luke Homen, provides a modern, client-friendly solution for filing bankruptcy across Oklahoma. The firm makes the process easy by allowing clients to complete consultations, document submissions, and filings remotely via phone, Zoom, or email, minimizing the need for in-person appointments. Only one visit is required to sign the final petition in person, saving clients time and effort. Headquartered in Oklahoma City and serving statewide areas including Tulsa, Norman, Edmond, and Lawton, Convenient Bankruptcy has become Oklahoma’s largest bankruptcy filing firm, earning 160+ five-star Google reviews for its efficiency, accessibility, and legal expertise.
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