Does The Military Care If I File Bankruptcy?
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Does The Military Care If I File Bankruptcy?

On Behalf of | Aug 20, 2018 | Uncategorized |

Are you thinking about joining the army? This is a very noble desire, but many have doubts because of their financial situation. For example, you have a big credit card debt, car loan or some unpaid medical bills. If you wanted to connect your life with the military, you may worry whether bankruptcy will hurt your chances. At Jack Setters, we treat each situation as a unique one, but there are some common principles that you need to know.

Bankruptcy and the military

Many people file bankruptcy protection without legal assistance and thus are not aware what consequences it may have. Although filing bankruptcy is very common, it can impact your ability to purchase a house or car, get credit, and in some cases, to find work within the armed services.
Particularly, the Department of Defense specifies that members of the Military Services are expected to pay their just financial obligations in an appropriate and timely manner. Each branch of service, nevertheless, applies this principle a little bit differently.
As an example, the Air Force makes use of the “40 percent policy,” which does not recruit people that have month-to-month consumer debts which exceed 40% or even more of their expected military pay. However, exceptions are made for debts which could be postponed, including student loans.
Therefore, prior to identifying whether you are fit to serve in the military the government will review your monetary situation, including whether or not you have continually paid your expenses and also handled your financial resources responsibly. Some military services might also call for some type of a meeting to examine your financial state.

What issues can reduce my chances for military enlistment?

There is a range of financial aspects that the military might examine prior to enabling you to enlist. As an example, the military could evaluate if you have any one of the following:
  • Overdue loans or in collections
  • history of bad credit 
  • A history of bankruptcy filings
  • Overdue child support payments
  • Overdue spousal support payments
  • Unpaid taxes
  • A history of writing negative checks
  • A history of property repossessions
  • Loan scams or tax fraud
  • A criminal record for embezzlement
  • A history of criminal financial misconduct
  • Consistently high debt to income ratios

Filed Bankruptcy In The Past?

If you have actually filed bankruptcy in the past this fact by itself will certainly not decrease your chances for work in the military. The service will likely review your reason for filing and make a determination.
For example, if you came to be seriously sick and collected $100,000 of medical debt and this was the main reason to file bankruptcy this could be viewed in different ways than if you had extreme bank card debts buying unneeded luxury products or because you simply lived above your means.


Generally, people who have a negative financial background because of spending money not wisely are rarely considered for employment where work is connected with high level of security or responsibility. You need to remember that every step has its own consequences and later you may be viewed  as more easily bribed or more vulnerable to making bad decisions individual.
Thus, if your bankruptcy is or was the result of unexpected conditions such as unemployment, divorce, death, or illness it may be less complicated to convince the military that you are financially accountable and can live within your means in the future. To file bankruptcy in a proper without inviting doubt and suspicion, contact a professional bankruptcy attorney for an expert advice and guidance.