{"id":286955,"date":"2016-04-04T10:41:53","date_gmt":"2016-04-04T15:41:53","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/bankruptcy\/what-is-bankruptcy\/bankruptcy-and-members-of-the-military.html"},"modified":"2025-08-23T16:22:05","modified_gmt":"2025-08-23T21:22:05","slug":"bankruptcy-and-members-of-the-military","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/bankruptcy\/what-is-bankruptcy\/bankruptcy-and-members-of-the-military.html","title":{"rendered":"Bankruptcy and Members of the Military"},"content":{"rendered":"\n
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Bankruptcy and Military Members<\/h1>\n\n
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\n By Christie Nicholson, J.D.<\/a> | Legally reviewed by Jordan Walker, J.D.<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n\n\n

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Key Takeaways<\/h2>\n

Members of the military are entitled to special protections for debt relief under the Servicemembers’ Civil Relief Act (SCRA). This\u00a0federal law\u00a0extends protections to active-duty members who file bankruptcy, that include\u00a0stays of proceedings, protection from default judgments, interest rate limits, and safeguards against eviction, foreclosure, and repossession. Military personnel may get exemptions like skipping the Chapter 7 means test and enjoying extended automatic-stay protections, while those with\u00a0Chapter 13 plans benefit from the SCRA’s limits on creditor actions.<\/i><\/p>\n\n <\/div>\n <\/div>\n<\/div>\n\n\n

This article examines\u00a0the\u00a0Servicemembers’ Civil Relief Act<\/a>\u00a0and explains\u00a0the rights of armed forces military members under the Act.\u00a0If you’re active-duty military or a member of the National Guard and are considering bankruptcy, contact an experienced\u00a0bankruptcy attorney<\/a>. They can\u00a0help you determine\u00a0whether bankruptcy is your best option and what protections the\u00a0SCRA might offer.<\/p>\n

The Servicemembers’ Civil Relief Act<\/h2>\n

Filing a Chapter 7 or\u00a0Chapter 13 bankruptcy<\/a>\u00a0can be challenging. Not only do you have to worry about filing the proper bankruptcy forms, but you also have to wait to see if the bankruptcy judge approves your petition or repayment plan.<\/p>\n

The last thing the government wants is for an active-duty service member to focus on their financial issues instead of defending their country. The legal protections under the\u00a0Servicemembers’ Civil Relief Act<\/a>\u00a0allow debtors in the military to focus their energy on the defense of the United States.<\/p>\n

Some of the protections under the SCRA include:<\/p>\n