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Veterans and Bankruptcy

There are a number of benefits that are available to veterans that civilians do not have access to. The VA, for example, is the nation’s largest integrated health care system and it is reserved for our veterans. Veterans are also entitled to certain protections and privileges when it comes to their finances.

Under the Service Members Civil Relief Act (SCRA), military personnel are protected from having default judgments executed against them as they are serving our country. Even if the service member received notice of a lawsuit, the SCRA can still stay the case until later. The stay request can come from the service member or from the court directly. This stay will last for at least 90 days to ensure that the court proceedings do not occur while the service member is away.

Veterans also have protection during bankruptcy proceedings. First, anyone seeking a default judgment in bankruptcy court must prove that the person they are seeking judgment against is not a service member. If the person the judgment is being taken against is a service member, he or she will be allowed to stay the proceedings. Service members who can show that the bankruptcy court order is affected by military service, can stay proceedings, court orders and even final judgments.

Therefore, if you are a service member who is about to be deployed overseas, it is important that you learn about your rights. This is especially important if you are facing litigation or if you suspect that you will face litigation while you are away. An experienced Orange County bankruptcy attorney can review your case and help you understand your options. The SCRA was created to protect you, but the process can be challenging. If you have any questions, do not hesitate to speak to a bankruptcy attorney who will fight to protect your best interests.