Security clearance is granted to an individual after a thorough investigation by the United States federal government. The investigation is conducted to establish whether the individual is reliable and trustworthy enough to be granted access to classified information. The clearance is granted if the individual is found to be of sound character and loyalty to the United States.
Bankruptcy is a legal process in which an individual or business declares themselves to be unable to pay their debts. The declaration of bankruptcy affects an individual's credit score and can stay on their credit report for up to ten years.
It is important to note that bankruptcy does not automatically disqualify an individual from security clearance. However, the bankruptcy will be taken into consideration during the investigation process. The investigation will consider the nature and extent of the bankruptcy, as well as the individual's financial history and current financial status.
If you are considering filing for bankruptcy, it is important to consult with an experienced security clearance attorney to discuss how bankruptcy may affect your clearance.
How can bankruptcy affect my security clearance?
Although a bankruptcy will not automatically disqualify you from obtaining or retaining a security clearance, it will likely have a negative impact on the decision-makers’ evaluation of your application. This is due to the fact that bankruptcy generally indicates poor financial management skills and/or irresponsible behavior, both of which are qualities that are not desirable in those who are entrusted with national security.
Furthermore, if you have declared bankruptcy within the past seven years, you will likely be required to provide a detailed explanation of the circumstances surrounding your filing as part of your security clearance application. This explanation will be taken into consideration when determining your overall suitability for a clearance.
Thus, while bankruptcy itself will not necessarily preclude you from being granted a security clearance, it is undoubtedly something that will work against you in the process. If you are currently facing bankruptcy, it is important to be as forthcoming as possible on your security clearance application and to be prepared to explain the reasons behind your financial troubles.
What are the consequences of bankruptcy on my security clearance?
The consequences of bankruptcy on security clearance are far-reaching and can have a significant impact on an individual's ability to maintain their clearance. In general, a bankruptcy will stay on an individual's credit report for up to 10 years, making it difficult to obtain new lines of credit or loans. Additionally, a bankruptcy can also lead to the loss of clearance if it is determined that the individual can no longer meets the standards for financial responsibility.
What are the risks of bankruptcy on my security clearance?
The potential risks of bankruptcy on one's security clearance are numerous. First and foremost, bankruptcy creates a significant financial burden that can prevent an individual from being able to maintain their current standard of living. This, in turn, can lead to financial instability and difficulty meeting one's financial obligations. Additionally, bankruptcy can also negatively impact an individual's credit score and make it difficult to obtain future financing. Finally, bankruptcy can also be a lengthy and stressful process that can take a toll on one's mental health and well-being.
Frequently Asked Questions
Can I get a security clearance after filing bankruptcy?
Yes, filing for bankruptcy will not automatically prohibit you from obtaining a security clearance. In fact, getting rid of debt in a Chapter 7 case could increase your chances of approval. Not only will filing show that you are taking a positive step towards resolving your financial problems, but also that you are able to take care of yourself financially.
Will bankruptcy affect my Air Force security clearance?
Your security clearance may be affected, but it is not automatic. The outcome depends on the circumstances that led up to the bankruptcy and a number of other factors, such as your job performance and relationship with your chain of command.
What does the security section consider when determining bankruptcy?
A bankruptcy is generally considered to have been caused by an unexpected event, such as medical bills following a serious accident. The security section will also consider the recommendations and comments of your chain of command and co-workers.
Do you have to disclose financial problems when applying for security clearance?
Yes, if you are in financial trouble, you must disclose it on the Security Clearance Application Form.
Can bankruptcy affect my security clearance?
There is no one definitive answer to this question, and it will depend on the specific case. In general, though, bankruptcy can potentially affect a person's security clearance if done for reasons such as trying to hide financial problems from creditors or attempting to avoid paying legal bills. Furthermore, if someone has had their security clearance revoked due to improper conduct (e.g., lying on their security clearance application form), filing for bankruptcy may make that revocation permanent.
