Roseville Bankruptcy Lawyer for Veterans
Enlisting in the military to serve your country both domestically and abroad is one of the most honorable callings a United States resident can undertake. Many military veterans, after fighting for their country, have chosen to settle in and retire in the Roseville, California area. Unfortunately, some veterans are having a difficult time enjoying their retirement when faced with mounting debt and medical bills which may be a result of their military career. Veterans faced with these issues may be at a loss regarding what course of financial action they should take next.
The Roseville bankruptcy attorneys of The Bankruptcy Group are proud to serve military veterans through a frustrating and likely unfamiliar moment of their lives. We recognize that filing for bankruptcy is a serious undertaking, but it is worth considering. Our team of lawyers and legal professionals work one-on-one with veterans to determine whether bankruptcy is a sound decision to deal with their debt. To schedule a free, no-obligation, and confidential bankruptcy consultation, contact our Roseville law firm at (800) 920-5351 or contact us online.
Types of Bankruptcy a Military Veteran Should Consider
There are two forms of bankruptcy which could be especially beneficial to a veteran looking to discharge or alleviate his or her debt. The two forms are Chapter 7 bankruptcy, which involves potential liquidation of assets, and Chapter 13 bankruptcy, which involves the reorganization of debt.
Chapter 7 bankruptcy allows a debtor to sell off assets which are nonexempt from Chapter 7 bankruptcy protection. This is accomplished via a trustee who sells the assets and uses the cash to repay creditors. The debtor would then be discharged from various categories of debt, meaning various debts would be wiped out, such as
- Credit card bills
- Utility bills (only past due amounts)
- Veterans assistance loans and overpayments
- Business debts
- Student loans (in very rare cases)
- Medical expenses
Chapter 13 bankruptcy primarily benefits those who have a regular source of income. If the individual has a desire to pay his or her debts, they can create a repayment plan to submit to the bankruptcy court and creditors. The plan must span a timeframe of three to five years. During this period of time, a debtor is generally protected from any actions by creditors, like lawsuits or wage garnishments, provided they stay current with payments.
Filing for Chapter 13 bankruptcy can be beneficial to a veteran because it would allow them to reorganize debts like medical bills or other debts which have swelled too large to handle without reorganization. Chapter 13 may also be preferable to Chapter 7 if you possess a valuable asset you seek to retain, such as your home.
Both Chapter 7 and Chapter 13 can help to reduce or eliminate medical debt, which is critical for many veterans. According to the United States Census Bureau, as of 2014, there were 3.8 million veterans with a service-connected disability. Many veterans use Medicare as their primary form of healthcare, however, Medicare often does not cover certain services or supplies an injured veteran may need. Additionally, Medicare may only cover some of a veteran’s healthcare costs. While Veterans Administration (VA) medical benefits are available, not every veteran is eligible for VA medical benefits as the benefits are administered by a priority system. If you’ve been struggling with medical debts, bankruptcy may be a viable solution.
Exemptions for Veterans When Filing Bankruptcy
Military veterans are eligible for certain exemptions when filing for bankruptcy. If a veteran is receiving VA disability it will be exempt from bankruptcy proceedings. While VA disability is considered income, a veteran does not need to pay taxes on it, and for purposes of bankruptcy it is exempt. Veterans should be warned that some states choose to opt out of this exemption.
Another exemption a veteran should be aware of, specifically when filing Chapter 7 bankruptcy, is that “means testing,” or testing to determine a debtor’s eligibility to file for Chapter 7, may be discarded for disabled veterans. The exemption is from the U.S. Bankruptcy Code and states that the bankruptcy court “may not dismiss or convert a case based on any form of means testing, if the debtor is a disabled veteran” and the debt occurred during active duty or homeland defense.
The last exemption to be mentioned is that veterans who file bankruptcy may qualify for personal property exemptions from $30,000 to $60,000, depending on whether the veteran files as an individual. These exemptions only apply to veterans who have filed bankruptcy as a result of their active military duty.
Roseville Bankruptcy Attorneys are Ready to Work with Veterans
Facing accumulating debt with no foreseeable way to eliminate it can be a daunting task. Fortunately, as a veteran, you have options concerning how to approach this issue. While filing for bankruptcy is a tough choice, it may be the answer you need to eliminate or reorganize your debts into a more manageable form. Bankruptcy can provide you with the peace of mind of knowing you are in charge of your debts and your life.
For help determining if bankruptcy in California is the right financial decision for you, call the Roseville Chapter 7 and Chapter 13 bankruptcy lawyers of The Bankruptcy Group today at (800) 920-5351 for a free consultation, or contact us online.