Protections for Servicemembers - Bankruptcy, Consumer and Foreclosure Protections

Yes. If you are facing Chapter 7 Bankruptcy or Chapter 13 Bankruptcy, you can assert your rights under the Honoring American Veterans in Extreme Need (HAVEN) Act. The HAVEN Act prevents certain benefits from being used in income calculations. These include: disability, death, catastrophic injury, combat-related special compensation, survivors benefits, and some retirement.

If you are facing debt collectors while on active duty or are facing increased interest rates while on active duty, you may be protected by the Servicemember’s Civil Relief Act (SCRA). The SCRA postpones or suspends certain debt obligations for active duty service members.

If you are facing foreclosure, you can contact the Department of Veterans Affairs and receive financial counseling.

• If you have a VA direct loan or VA backed loan, you can call the VA and ask for a VA loan technician to be assigned to your case. The technician will provide financial counseling and can help you deal with your servicer (if VA backed), or deal with your servicer themselves (if VA direct).
• If you are 61 days past due on your VA direct or VA backed loan, a VA technician will automatically be assigned to your case.

You can also get housing counseling from the Department of Housing and Urban Development (HUD). They will offer advice and potential resources regarding your housing situation.

You can also contact the National Call Center for Homeless Veterans if you are concerned you will become homeless post-foreclosure.