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Army OCS, Security Clearance & Bankruptcy

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CaptainA87

New member
I recently signed for OCS. My ship date is April 2020. My concern is my security clearance. While everything else in my packet is pristine, I may have to declare bankruptcy after a string of bad luck. I lost a job in March after two weeks when the company decided to cut staff, and then had an offer rescinded due to a conflict check. The expense of moving and security an apartment put me in a financial bind. Despite my best effort to reign in my debt, I am drowning and watching my credit get murdered.

I have been working with a financial counselor and they advised I declare bankruptcy. They do not believe I will be able to get the debt paid off by the time I ship, and the reduction in salary for BTC will mean default. My recruiter says declaring bankruptcy will blow my security clearance, and I will be reclassified. Is there any way to obtain my security clearance if I end up declaring bankruptcy?
 


FlyingRon

Senior Member
Actually, you're already screwed. Having crushing debt is EXACTLY the type of things that rightfully would stop you from getting a security clearance. A bankruptcy would likely help that. You should be talking to your post security people about this, not some civilian financial "advisor." At least get an attorney (maybe two, one bankruptcy, one who deals with security clearances).
 

Shadowbunny

Queen of the Not-Rights
Actually, you're already screwed. Having crushing debt is EXACTLY the type of things that rightfully would stop you from getting a security clearance. A bankruptcy would likely help that. You should be talking to your post security people about this, not some civilian financial "advisor." At least get an attorney (maybe two, one bankruptcy, one who deals with security clearances).
Since OP hasn't shipped yet, he won't have access to on-post resources.

CaptainA87, your recruiter is right. Your choices at this point are to 1) move to a needs-only financial plan (aka, only spend money on needs, not wants) for the next 8 months and get your debt paid down, 2) get a second (or third) job and throw all that money to your debt, 3) hit up family/friends for a personal loan to pay off your debt (then don't incur any new debt), or 4) reclassify.
 

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