Bankruptcy And My Security Clearance

Dod department of defense directive 5220 6 covers all matters regarding security clearances.
Bankruptcy and my security clearance. I practice in the washington dc area. My previous blog posts dated july 16 2012 and august 6 2012 discuss security clearance matters in general. The short answer is that the filing of a bankruptcy caseitself will not affect your security clearance however the reasons that a person might file a bankruptcy case could cause a security clearance problem. Security clearances and bankruptcy.
As a general rule people who already have a clearance and who aren t in trouble for anything else do not lose their clearances because of bankruptcy. In fact declaring bankruptcy can actually help save a security clearance in certain cases because it helps resolve the security clearance holder s susceptibility to coercion or bribery. Lots of my clients work for federal agencies and contractors who require security clearances as a condition of their employment. This is a very important question with a nuanced answer so we will go through our explanation carefully.
What many security clearance holders and applicants fail to realize is that its not the bankruptcy itself that is an issue. Before the military issues a security clearance the applicant s background is scrutinized for factors associated with a propensity to commit unlawful acts. Filing bankruptcy might help your chances of getting a security clearance. Bankruptcy security clearance accomplished security clearance lawyers since 1976.
Will filing bankruptcy cause problems with my security clearance. The first question they ask when them come to see me is whether a bankruptcy filing will cause them problems with their security clearance. The status of your security clearance can be affected but it is not automatic. A common question we get asked is how will filing for bankruptcy affect my security clearance guideline f and your security clearance.
Most bankruptcies occur because the filer suffered financial strain due to high medical bills divorce or unemployment. Although financial irresponsibility is viewed negatively the act of filing for bankruptcy is not and in fact filing bankruptcy could improve approval odds. The short answer i give. Experiencing one or more of these events won t affect your security clearance much in all likelihood.
People who are applying for a clearance for the first time should do everything possible to keep everything current until the clearance is approved. In fact the united states air force academy legal office says this about bankruptcy. Lots of my clients work for federal agencies and contractors who require security clearances as a condition of their employment. I practice in the washington dc area.
The first question they ask when they come to see me is whether a bankruptcy filing will cause them problems with their security clearance.