Effects of filing bankruptcy on security clearances

In Augusta, Georgia, Evans, Georgia and throughout the entire CSRA, many individuals are suffering financial distress and are concerned about the effects of their negative financial status and filing bankruptcy on their security clearance. Many individuals who are employed by the United States Army (or other branch of the United States military) at Fort Gordon, by the Department of Defense as a civilian contractor, by a contractor at the Savannah River Site, or by a contractor at the Plant Vogel nuclear facility, are required to obtain a federal security clearance to obtain or maintain their employment.

Frequently, individuals who are required to maintain a level of security clearance as a condition of their employment or military service ask whether or not a bankruptcy will affect that security clearance. Technically, the filing of a bankruptcy petition is a neutral factor for a person obtaining or maintaining his security clearance. The concern for the federal agencies is whether or not the individual is under financial distress. In the event an individual is facing foreclosure, repossession of a automobile, collection notices or lawsuits regarding past-due debts, that individual is considered a potential security risk. Obtaining or maintaining a security clearance with those issues could be difficult. If that person files bankruptcy to protect his home from foreclosure, his car from repossession or to stop garnishments or lawsuits, then he is no longer under financial strain, and his federal security clearance can be protected. In many cases, a person who is concerned with losing his federal security clearance because of negative credit information can help preserve his security clearance by filing bankruptcy to eliminate the financial strain that could place the security clearance in jeopardy.

Each individual case needs to be reviewed for the potential effects of filing bankruptcy on a security clearance. If you are facing foreclosure on your home, repossession of your automobile or harassing creditor phone calls, or other financial distress that may negatively affect your security clearance, contact our office today. Our law firm offers a free initial consultation for potential individual bankruptcy cases, and can discuss with you in detail how to eliminate your financial stress, protect your home, protect your automobile and restore your financial dignity. We can also discuss with you any concerns you may have about the effect that a bankruptcy filing will have on your security clearance, credit score, and employment opportunities.