I had a question arise recently regarding a military enlistment bonus debt. The terms of enlistment were not completed so that part of the bonus has to be paid back. The question was whether that debt could be discharged in bankruptcy. As we know, the government makes it hard to get out of a debt owed to them (taxes and student loans for example).
According to Title 37 U.S.C. 303a(e) it appears such a debt will be dischargeable in bankruptcy if 5 years have passed since the date of the termination of the bonus agreement or contract on which the debt is based. Also, if there was no agreement but five years have passed since the date of termination of the service on which the debt is based, it may be dischargeable. Therefore, if the government is trying to collect on a overpaid military enlistment bonus and it has been five years, a bankruptcy may benefit you. Seek good legal counsel to determine your options.
According to Title 37 U.S.C. 303a(e) it appears such a debt will be dischargeable in bankruptcy if 5 years have passed since the date of the termination of the bonus agreement or contract on which the debt is based. Also, if there was no agreement but five years have passed since the date of termination of the service on which the debt is based, it may be dischargeable. Therefore, if the government is trying to collect on a overpaid military enlistment bonus and it has been five years, a bankruptcy may benefit you. Seek good legal counsel to determine your options.
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