The Effect of Bankruptcy on Security Clearance Jobs

Security clearance bankruptcy can cause you to lose your security clearance job if you had one.  Bankruptcy can also prevent you from obtaining a security clearance job if you apply for such a job.  When it comes to classified information in the United States, a bankruptcy will not necessarily disqualify a candidate for the level of “Secret clearance.”

Why Bankruptcy Will Terminate or Deny a Security Clearance Job

The thinking behind the termination or denial of you holding such a job if you have security clearance bankruptcy is because excessive indebtedness increases the temptation to commit unethical or illegal acts in order to obtain the money to pay off your debts.  One such example would be to sell the classified information you have access to.  Such information would net a high price that would enable you to pay off sizable debts, including those that were not forgiven by your filing for bankruptcy.

Other Factors that Lead to Applicants Not Getting Security Clearance Jobs

The following factors are taken into consideration when considering an applicant for a security clearance job:

• The cause of debt
• The response to debt
• The amount of debt

The cause of debt reveals more about a person’s reliability, trustworthiness, and judgment than the amount of debt does.  The cause of debt is an especially glaring problem if irresponsibility (i.e. reckless behavior) is what led to the massive debt that led to bankruptcy. 

The response to debt takes into account what things people do or don’t do when it comes to delinquent debt.  How people deal with it is a prime consideration on whether they will be given access to classified information.  If people ignore their financial responsibilities, they could also ignore their responsibility to safeguard classified information as well.

Attaining Legal Help

If you lost your security clearance job due to a bankruptcy filing, you may be wondering whether you can get your job back.  An established and experienced bankruptcy attorney will know the federal and state laws that apply to your case and will present the strongest possible argument under the law to show that your bankruptcy filing does not make you a poor candidate for a security clearance job and that you should regain your previous employment.