Declaring bankruptcy while active duty

[ClipArtBananas]

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I am a second year resident. Due to family circumstances (parent with gambling addiction, siblings with drug addictions) I have fallen into crazy debt - regrettably I couldn't resist bailing out my family. I can still make my payments for now, but I have no reserves and it is tougher getting my payments together. I will have no trouble paying off the debt in the future as an attending and my lifestyle is extremely frugal already. I am considering talking to an attorney about bankruptcy but what will be the impact from the military side of things? I imagine I would lose my commission and my security clearance? Anybody encounter this kind of thing from the physician/officer side of things?

Thanks for the help and advice

 

[deleted480308]

I would talk to the military about it, others might tell you otherwise

 

[NITRAS]

Just a couple things.
1. A bankruptcy will mess up your credit score, which is used for security clearances. I have no idea how that effects physicians in the military.
2. Your student loans are not bankrupt-able. Also, bankruptcy is not a path to wealth.
3. Have you figured out that your giving money to addicts is a bad idea? You are actually supporting their addictions by giving them money. You are hurting them. You need to set financial boundaries, and you needed them 5 years ago. This will cause relational stress, but that is not your fault.

 

[ClipArtBananas]

Yes, I've figured that out long ago... paying loved one's bills/court fees/bail/rent/inpatient addiction centers was an emotional decision not a practical one. Just trying to climb out of my own hole now and laying out my options. I'm aware of the consequences of bankruptcy and avoiding it as much as possible. Posted this question strictly to figure out the impact on my residency and future commitment.

Appreciate the responses

 

[HighPriest]

Agree with speaking with the military. They have programs for people in your situation, as these situations are ludicrously common amongst the enlisted. They may or may not have any better answers for you, but it's an asset that is available to you and free. No reason not to look in to it.

 

[j4pac]

Good luck! You’re in a tough spot. Ultimately, your family needs to get help, but it takes two to tango. Obviously, if you continue down this path this is going to ruin you. This won’t be the last time this happens. I’d strongly suggest living well below your means. Once you get out of residency continue to live like a resident indefinitely until your family gets their stuff together. I’d also consider talking to a counselor, as this is very stressful and you need to find a way to keep your mental health intact. Physicians tend to have horrible insight into their own problems.

 

[colbgw02]

As already mentioned, from a purely military standpoint, I would be concerned about how this would affect your security clearance. For that reason alone, I would get your COC involved.

 

[ClipArtBananas]

Thanks all for advice, will get my chain involved.

 

[haujun]

If you already have security clearance (obtained during medical school) I wouldn’t worry about it. Security clearance needs to be renewed every 10 years and most HPSP docs leave before having to renew security clearance.

 

[Cooperd0g]

The issue has more to do with if it is discovered in a different way. Then you can lose your clearance. It is ALWAYS better to be ahead of the game on this issue.

 

[notdeadyet]

I participate only peripherally with security clearances (via psych). From what I’ve seen, if you’re worried about security clearance, I’d be MUCH more worried about large unresolved debt you’ve gotten behind than I would be for proactive albeit unfortunate management of said debt via bankruptcy.

 

[ClipArtBananas]

Thanks again for the input.

Discussed with my unit and they were able to show me to some helpful financial resources on base. I should be able to avoid bankruptcy. THanks again for the help

 

[HighPriest]

Very glad to hear that. Glad the system is actually working for you.

 

[jabreal00]

Debt or bankruptcy can affect security clearance at least obtaining it. If you debts are becoming unmageable sometimes you can get a loan from the military that has much more favorable rates. Definitely worth discussing. In all those security online training videos, debt is a red flag that makes one vulnerable to bad actors. The military would take it seriously if you want to them or at least that is the lip service they give.