The decision to serve one’s country in the United States Armed Forces is both brace and commendable. We thank you for your service. Unfortunately, however, many individuals who enter the military find themselves, at some point, in financial distress. This may be for any number of reasons, not the least of which is because they are leaving a one-income family at home while they are on tour.

On a positive note, there is help for members of the military who find themselves in over their head in debt. The US government has passed laws to protect active military and veterans when financial stress at home becomes unmanageable.

Contact an experienced bankruptcy lawyer who can explain your rights and guide you through the process of filing for, and being granted, bankruptcy protection whether you are a member of the military. Joel R. Spivack, Esq. has helped countless members of the military from Camden, Gloucester and Burlington counties in New Jersey. He will help your family, too.


New Jersey is home to many military bases including Fort Dix, Picatinny Arsenal, McGuire Air Force Base, and the Naval Weapons Stations Earle, to name a few.

It’s true that someone who is unable to pass the Mean’s Test (they have higher incomes than the average family their size) is usually not able to file for Chapter 7 bankruptcy protection. However, members of the military and veterans – including the US Army, US Navy, US Marines, US Air Force and US Coast Guard – have certain special debtors’ rights.

Active Duty: If you are currently serving in the military in what has been labeled a “combat zone” you will not have to undergo pre-bankruptcy credit counseling prior to filing for bankruptcy. However, active duty military are still required to pass the income test, also called the Mean’s Test.

Disabled Vets: If you are considered more than 30 percent disabled and over half of your disability was caused due to active duty (or other Homeland Defense-related work) you are completely exempt from having to take the Mean’s Test to qualify to file for Chapter 7 bankruptcy.

Reservists/National Guard: If you file for bankruptcy while you are on active duty, or within 540 days after you finish a tour of active duty, members of the National Guard and those in the Reserves are exempt from having to qualify for Chapter 7 bankruptcy through the Mean’s Test.

Further, all active duty members of the military, are entitled to special protection under SCRA (the Service Members Civil Relief Act). Any active duty military personnel are protected against being evicted or receiving a default judgment. The Act also has provisions that call for reduction of interest rates for active members of the military.

If you are in the military, and live in New Jersey, Contact the Law Offices of Joel R. Spivack for a free consultation about your financial situation. Mr. Spivack fights hard for the rights of clients who live in Camden County and throughout Central and Southern New Jersey.


Technically, filing for bankruptcy protection when you are in the military should not impact your level of security clearance. However, if the US Armed Forces has reason to believe that you are fiscally irresponsible, that may very well affect your military clearance.

Therefore, the real thing to be concerned about when it comes to bankruptcy and military security clearance is this: what are the reasons you are in overwhelming debt? If the problem is frivolous spending, gambling debt, illegal financial or fraudulent activity – including theft, tax evasion or embezzlement, debt arising from drug or alcohol abuse or any other behavior that may lead your superior officers to believe you may be a security risk due to lack of self-control or poor judgment.

If the situation that led to your debt is something else, such as divorce or medical bills, your bankruptcy is unlikely to have an impact on your security clearance level.

Speak with Mr. Spivack right away to discuss your financial situation in New Hanover, Burlington, Trenton or Wharton, New Jersey. The truth is, if you have a significant amount of unpaid debt, that may have more of an effect on your military clearance level than a bankruptcy might. Mr. Spivack will be able to explain your rights and options.

Talk to an Experienced New Jersey Bankruptcy Lawyer Today for Free

If you are an active duty member of the military or a veteran, we truly understand the sacrifice you have made, and continue to make, for this great country. The last thing you should have to do is worry about finances or the well-being of your family, when you are doing your job.

Contact Joel R. Spivack, Esq. for a free consultation about debt negotiation or how you can discharge your overwhelming debt through bankruptcy. His knowledge, experience and compassion will put you at ease and the advice and guidance he can provide will be priceless. Contact his Cherry Hill, NJ office today.

We are here to help you.

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We are licensed to practice in New Jersey and Pennsylvania.

Attorney Joel R. Spivack is an experienced bankruptcy and residential real estate transactions lawyer in Cherry Hill, New Jersey. Clients come to us for legal services, but what we really provide is peace of mind. For more than 30 years, Attorney Spivack has helped people make wise, informed decisions about bankruptcy filings, debt relief options and residential real estate transactions.
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