How Bankruptcy can affect Security Clearance

July 27, 2015 Posted by kingcade

Determining whether bankruptcy will affect your security clearance depends on the circumstances that led up to your bankruptcy. Filing for bankruptcy will not automatically stop you from obtaining a security clearance; however, your financial situation can jeopardize your security clearance. Before you file for bankruptcy, it is important to understand how your security clearance may be affected. Security clearance decisions are made on a case by case basis.

The following factors are considered when assessing you as a potential security risk:

•allegiance to the United States
•foreign influences and preferences
•drug or alcohol use
•personal conduct
•financial responsibility
•criminal conduct
•psychological disorders
•handling of protected or classified information
•use of information technology
•other outside activities

There are also financial considerations that may affect your security clearance. The military considers your financial standing as an individual when determining whether you should be granted security clearance. This reasoning is based on important factors such as financial self-control, spending judgment and ethics used to maintain financial stability. Certain financial conditions can disqualify you from obtaining a security clearance, such as:

•being unable or unwilling to pay your debts;
•having irresponsible or frivolous spending habits;
•having consistent difficulty meeting your financial obligations;
•committing illegal acts of financial misconduct;
•exhibiting financial problems such as gambling, alcoholism or drug abuse;
•spending beyond your financial means.

Certain scenarios such as a job loss, a divorce or a medical emergency may cause you to file for bankruptcy. These instances are viewed more favorably than if you had to file due to financial irresponsibility. A knowledgeable and experienced bankruptcy attorney can further advise you on how filing for bankruptcy might affect your security clearance.

If you have any questions on this topic or are in a financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover.  The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Sources:
http://www.nolo.com/legal-encyclopedia/will-bankruptcy-affect-my-military-security-clearance.html

http://thelawdictionary.org/article/bankruptcy-and-foreclosures-impact-on-federal-security-clearance/

Comments are closed.