23 Mar Minnesota Bankruptcy and Veterans
Service members endure a lot including: low pay, time away from home, long hours and stress. One of the worst things that can happen to a veteran is finding that they have accumulated debt as a result of their sacrifice. Gratefully a portion of the United States Bankruptcy Code deals specifically with veterans and their financial problems.
11 U.S.C. 707(b)(2)(D) does not allow means testing on a veteran who was either:
(1) on active duty
(2) performing homeland security
(3) for veterans who have recently ended active duty. The means test is a simple mechanical test that takes into consideration the income of the debtor, where the debtor lives and the number of individuals the debtor lives with. In the case where a debtor earns too much income the only option is a chapter 13 bankruptcy (repayment plan). Through not being subject to the means test veterans who would otherwise not qualify for chapter 7 bankruptcy can file and be rid of their debt in as little as 95 days (filing to discharge).
Veterans benefits are also protected from capture. 11 U.S.C. 522(d)(10)(b) protects benefits provided for veterans from collection by the trustee.
The key is to act fast. Factors change and any delay can result in the means test being applied against you. Contact me today to discuss how we can take the financial stress out of your life.