In a recent Chapter 7 Bankruptcy Filing in San Diego, the McMillan Law Group successfully defended a Debtor against a motion for relief from stay filed by the Debtors alleged Second Lien Holder. The Debt as to the Debtor has accordingly, been discharged.
The short answer to this question is Yes. Legally speaking, military members (both past and present) are afforded the same rights to file for Bankruptcy as all civilians are. While military members are expected to adhere to a greater financial responsibility, their legal right to liquidate their debts and protect themselves and their families from creditors is still available.
Car Loans in Chapter 7 Bankruptcy