Since a number of you have referenced getting into financial trouble while waiting for clearances/jobs to come through, I want to note that filing a Ch. 7 bankruptcy is no longer a big issue UNLESS you incurred the debt by living a lavish lifestyle, gambling, and something unsavory. Running up credit cards to stay afloat while unemployed (or underemployed) – or due to other unavoidable events such as a large medical expense – happens (and has happened) to a lot of us. In the fall of 2014, I finally landed a job after several years of looking and 800+ applications. I had freelance income during only one of those several years. Shortly after my then-employer got the application process started for my Secret clearance, I realized I’d need to file for a Ch. 7 or I’d go under financially. I went to our company’s security officer and explained my situation. He reassured me that none of my reasons for needing to file would disqualify me, so I proceeded to file with the assistance of a NoVa attorney (Robert Weed) who has decades of experience helping people with clearances (or who hope to get clearances). My bankruptcy was discharged in June 2015, and my Secret clearance was adjudicated in July. (I now have an interim TS.) Discharging your debts (federal student loans excepted) through a bankruptcy makes you far less of a security risk than if you’re drowning in debt – so it’s worth checking out before you lose everything.
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