Security clearance after Chapter 7

What is the name of your state? Alabama

My husband and I had to file bankruptcy in December of 2003. The bankruptcy has been discharged. My husband is employed with the Dept of Army as a civilian contractor and had to go through a security clearance when he took his job over a year ago. He is now interested in applying for another position with a different Army contractor. Will this bankruptcy affect his ability to get another security clearance? This is a much better job opportunity for him, but he is concerned that because we had to file bankruptcy he will be denied a security clearance. Our bankruptcy was due to a failed business but it was personal because we used our own funds to try and pay off the debt incurred due to not being able to obtain a small business loan. What is the law concerning obtaining a security clearance in regard to a Chapter 7 bankruptcy? There are no other problems with our personal past other than this bankruptcy. Up until this point we had excellent credit for the past 20 years, but after trying to sustain a restaurant in 1999, finally in 2003, we had to file bankruptcy. My husband also served 20 years in the Navy and retired honorably. I would appreciate any information you could provide. Thank you. MrsG

[enjay]

It depends on the level of clearance. Chances are, it will be hard for him to obtain a top secret clearance. Not absolutely impossible, but unlikely. When is he due for an update (10 years for secret, 5 years for top secret)?

[bigun]

Prehaps the 2nd post in this thread wil help.


[url]http://www.creditboards.com/phpBB2/viewtopic.php?t=32877[/url]

[AttorneyOney]

From [url]http://www.fas.org/sgp/spb/class.htm[/url] (adjudicative guidelines for determining access to classified information):

18. The Concern. An individual who is financially overextended is at risk of having to engage in illegal acts to generate funds. Unexplained affluence is often linked to proceeds from financially profitable criminal acts.

19. Conditions that could raise a security concern and may be disqualifying include: (a) A history of not meeting financial obligations; (b) deceptive or illegal financial practices such as embezzlement, employee theft, check fraud, income tax evasion, expense account fraud, filing deceptive loan statements, and other intentional financial breaches of trust;

(c) inability or unwillingness to satisfy debts;

(d) unexplained affluence;

(e) financial problems that are linked to gambling, drug abuse, alcoholism, or other issues of security concern.

20. Conditions that could mitigate security concerns include: (a) the behavior was not recent;

(b) it was an isolated incident;

(c) the conditions that resulted in the behavior were largely beyond the person's control (e.g., loss of employment, a business downturn, unexpected medical emergency, or a death, divorce or separation);

(d) the person has received or is receiving counseling for the problem and there are clear indications that the problem is being resolved or is under control;

(e) the affluence resulted from a legal source; and

(f) the individual initiated a good-faith effort to repay overdue creditors or otherwise resolve debts.

Note that no single factor will necessarily be determinative, but the fact the the bankruptcy discharge will tend to reduce the need to raise funds ought to militate in your favor.