Active duty and contemplating filing bankruptcy question.

[Anonymous]

Active duty Marine that banks with Navyfed.  We have our active duty checking account, two car loans, and a credit card.  If I file for bankruptcy will navyfed contact my command and get me in trouble?  I know you can get in trouble under the UCMJ for failing to pay debt but If I file for bankruptcy and continue to pay my payments until the debt is discharged will they contact my command or will I get in trouble? 

Same question but for other banks.  I have a credit card with BOA and a credit card with Security services credit union.

Below is what we have and need to get rid of because we just cannot afford them anymore and im getting out of the Marines in 8 months and I will definitely not be able to afford any of this...

Star Card $160.00 $3,975.76

SSFCU Credit Card $100.00 $5,031.10

Bank of America Credit Card $110.00 $4,834.57

Navy Fed Credit Card $342.00 $17,500.00  

WHAT IT COST ME A MONTH$712.00    DEBT TOTAL$31,341.43

Im thinking with what I know if they did try to contact my command it would not be considered failing to pay debt as long as I kept making the payments until the debt was discharged by the court...

Any other AD Marines with similar situations??  Any tips before I file??

[DaveInAZ]

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@Anonymous wrote:

Active duty Marine that banks with Navyfed.  We have our active duty checking account, two car loans, and a credit card.  If I file for bankruptcy will navyfed contact my command and get me in trouble?  I know you can get in trouble under the UCMJ for failing to pay debt but If I file for bankruptcy and continue to pay my payments until the debt is discharged will they contact my command or will I get in trouble? 

Same question but for other banks.  I have a credit card with BOA and a credit card with Security services credit union.

Below is what we have and need to get rid of because we just cannot afford them anymore and im getting out of the Marines in 8 months and I will definitely not be able to afford any of this...

Star Card $160.00 $3,975.76

SSFCU Credit Card $100.00 $5,031.10

Bank of America Credit Card $110.00 $4,834.57

Navy Fed Credit Card $342.00 $17,500.00  

WHAT IT COST ME A MONTH$712.00    DEBT TOTAL$31,341.43

Im thinking with what I know if they did try to contact my command it would not be considered failing to pay debt as long as I kept making the payments until the debt was discharged by the court...

Any other AD Marines with similar situations??  Any tips before I file??

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Well, I've never been in the military and know nothing of about the UCMJ, but I can't believe it would be a violation to file BK - BK proceedings are U.S. federal law, and even the military can't contradict federaL law. And a BK discharges your debt, so after BK discharge there is no debt that you're failing to pay. And it's unlikely they would accept payments after you file as oncee you file there's an automatic stay from them making any attempt to collect the debt, and even voluntary payments after filing can be considered and attempt to collect a debt.

And what would you do with the 2 car loans? Your options will be:

1- Reaffirm, sign a reaffirmation agreement obligating you to pay the debt in full, you keep the cars

2- Retain, keep making the payments on time and you keep the cars

3- Surrender, if you owe more than one or both cars are worth you're probably better off stop paying surrendering them

And you should be aware that your command may find out you filed BK, and not from your creditors. BK filings are published in local newspapers as legal notices, listing your name & the amount of $$ in the BK. A vendor I had fired for poor performance noticed my name in the newspaper notice and called & told my boss. My boss said he considered it a personal matter and never spoke of it again. Someone who doesn't like you may see yoiur filing and spread the word.

[bstone]

Plenty of people in the military file BK, and they don't end up punished under UCMJ. If you're worried about it talk to your commander before hand, but it's unlikely anything in the way of punishment will come from it.

[Guyatthebeach]

You need to definitely talk to you C.O. about this. You can file bankruptcy while you're still in the corp with no major issues. Have you thought about going into a debt program? I don't know where you're stationed but I know there are local organizations that work with those stationed at Camp LeJeune and Camp Penndleton.

PM me if you need some more info.

Guyatthebeach!

[redbeard]

The other thing to think about is if you have a security clearance, the bankruptcy will likely remove that.  I don't know if its an issue in your job or not though.

Alternatively, just file in 8 months when you get out.  Then there are no concerns.  

Dan

[bstone]

I agree with waiting till you get out, absolutely nothing they can do once you are discharged. Assuming you can hold on and keep paying till then.

[Anonymous]

Do you think its even worth filing over 31k in debt that cost about 700 a month in payments?  Would it be smart to consolidate everything onto one card???

[StartingOver10]

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@Anonymous wrote:

Do you think its even worth filing over 31k in debt that cost about 700 a month in payments?  Would it be smart to consolidate everything onto one card???

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It is impossible to answer this question without knowing your income. 

[Guyatthebeach]

I would try to consilidate first. You really should see an advisor on this. I'm sure NavyFed could help you.