Unpaid debt, even when it’s reached the point of being turned over to a collection agency, rarely becomes a matter that’s addressed by someone’s employer (other than possibly through wage garnishment, if there’s a court order to do so).
When that employer is a branch of the U.S. military, however, it can be a different story. Service members are required to live up certain standards of behavior which can extend into their personal lives. When they don’t, they can face serious consequences.
Loss of security clearance
A debt that ends up on someone’s credit report can cost them their security clearance. Not every service member needs a security clearance. If one is required for their job, they can potentially lose that job and other opportunities for which they’re otherwise qualified if they can’t get the necessary clearance. The same is true for jobs outside the military – for example, with various law enforcement agencies, where it’s critical that employees not be susceptible to bribes or blackmail.
Military discipline
Article 134 of the Uniform Code of Military Justice (UCMJ) discusses “dishonorable failure to pay debts.” That doesn’t mean that any failure to pay a debt will result in military disciplinary measures.
If someone accidently got behind on a loan payment or they dispute whether they owe a debt, that likely wouldn’t bring any kind of military disciplinary measures. Under the UCMJ, “failure to pay must be characterized by deceit, evasion, false promises, or other distinctly culpable circumstances indicating a deliberate nonpayment or grossly indifferent attitude toward one’s just obligations.” The maximum punishment could include “confinement of up to 6 months” and a bad-conduct discharge.
It’s critical for any service member who is facing potential disciplinary measures for any type of debt they owe, including spousal and child support payments, to get experienced legal guidance to protect their rights and their career, given all that is at stake.