Legal Question in Bankruptcy in Virginia
Military Bankruptcy
My brother wants to file bankruptcy. His wife was in a car accident while she was pregnant and cannot work for a while. He is in the Marines and was told by a friend that if he filed bankruptcy, the Marine Corps would put him in jail. Is this true? Thanks.
4 Answers from Attorneys
Marine Corps / Bankruptcy
Nonsense. The government is prohibited from taking adverse action against persons who file bankruptcy. It's not a crime to have a familycrisis that causes bills to exceed assets andincome, either in the civilian or military worlds.
Marine Corps / Bankruptcy
If your brother's wife was in a car accident while she was pregnant and cannot work for awhile, she should have some other income as compensation from the car accident.
As to the bankruptcy issue, no one should ever file bankruptcy unless a creditor is about to take something through garnishment or attachment.
Whether the military would take punitive action against your brother is a question he ought to address to the folks in the base JAG office; they will help him find the way to go.
Your brother might also want to avail himself of financial counseling services through the base JAG office.
Marine Corps/Bankruptcy
This is most definitely not true. I have represented a number of marines (as well as other members of the military) in bankruptcy proceedings and none of them has been threatened with jail.
If we can help your brother, please feel free to have him call our offices.
No debtor's prison (even for Marines)
11 U.S.C. 525 (a) prohibits any governmental unit from discriminating with respect to employment against a person for being a debtor in a bankruptcy proceeding. However, your brother should check to find out whether your sister-in-law is eligible to receive some kind of no-fault or other insurance benefits to replace all or part of her lost income as a result of the accident. Bankruptcy may not be necessary.
Related Questions & Answers
-
Real estate as it relates to bankruptcy law my brother and i were left real estate... Asked 10/11/97, 4:45 pm in United States Virginia Bankruptcy Law