Bankruptcy and Members of the Military
If you are a member of the U.S. armed forces, a reservist, or member of the National Guard, you can file for bankruptcy just like any civilian. However, Congress has provided some special rules for servicemembers filing for bankruptcy. For example, disabled veterans and certain reservists and members of the National Guard are exempt from the bankruptcy means test (that's the test that keeps higher income earners from filing for Chapter 7 bankruptcy). And the Servicemembers Civil Relief Act gives bankruptcy courts the power to stay or postpone bankruptcy proceedings while you are on active duty.
If you are in the military or plan to become a servicemember, however, you should carefully weight the effect bankruptcy will have on your enlistment and security clearance. In many cases, it won't matter -- but it could.
Learn about bankruptcy rules that apply to military members.
Whether filing for bankruptcy will affect your security clearance depends on the circumstances that led to your bankruptcy.
Active service members can take steps to reduce loan obligations, prevent court judgments, and avoid eviction and foreclosure.
Empower Yourself: DIY Products by Nolo
Sidestep the lawyers with do-it-yourself books, documents, and software.
Nolo offers hundreds of consumer-friendly, do-it-yourself legal products for all types of legal situations. Browse our full product list.
More Legal Issues
Click below to view more legal issues. Our extensive collection of legal topics ranges across different areas of practice.
Corporations Car Accidents Criminal Law Debt Management Disability Law Divorce & Family Law
Learn About Our Team
Our editors have over 100 years of combined experience practicing law. These professionals have worked in a wide range of legal areas, from estate planning to criminal law to business formation and beyond. They’re experts at explaining complicated legal issues in easy-to-understand terms.
Learn more about the team that manages Nolo’s articles, books, and DIY tools.
Need a Lawyer? We Can Help
Find an experienced, local attorney in three easy steps. Our process is designed for ease and simplicity.
Describe Your Case
Briefly tell us about your case, and provide your contact information.
Get Connected
We find and instantly list attorneys that can best handle your case.
Hire an Attorney
Choose the attorneys you would like to work with.
Nolo Legal Dictionary
At Nolo, we prioritize quality and transparency because we know how important reliable legal information is to our readers. Our information is meticulously researched, regularly updated, and written in plain English by our experienced writers and editors. Learn more about our editorial standards.
Are You an Attorney?
Grow your firm with Martindale-Nolo, the largest legal network, and learn more about our attorney lead-generation and marketing services.
Integrity and Expertise You Can Rely On
At Nolo, we prioritize quality and transparency because we know how important reliable legal information is to our readers. Our information is meticulously researched, regularly updated, and written in plain English by our experienced writers and editors. Learn more about our editorial standards.
Copyright ©2025 MH Sub I, LLC dba Nolo ® Self-help services may not be permitted in all states. The information provided on this site is not legal advice, does not constitute a lawyer referral service, and no attorney-client or confidential relationship is or will be formed by use of the site. The attorney listings on this site are paid attorney advertising. In some states, the information on this website may be considered a lawyer referral service. Please reference the Terms of Use and the Supplemental Terms for specific information related to your state. Your use of this website constitutes acceptance of the Terms of Use, Supplemental Terms, Privacy Policy, Cookie Policy, and Consumer Health Data Notice.
Your Privacy Choices