Bankruptcy LLC and Chap 7


#1

I have held a TS/SCI for over ten years with perfect job ratings and never any difficulties in paying bills. Then I was laid off for 5 months, but eventually landed on my feet with a new job- but fell behind on some payments with my LLC (a side company). The tax debt, bad credit piled up and my biz partner “left me holding the bag”.

I want to go BK on the company and according to my lawyer , I might as well throw in a chap 7 and discard it all. I currently hold a TS/SCI position with a private contractor and have 1.5 years left on my TS before a review.

Can I dissolve the LLC, File a chap 7 and still have hope of keeping my clearance?


#2

Yes, bankruptcy is a legal way to address situations such as yours, however, you must report your current situation to your FSO and keep them abreast of the court actions and final disposition. If you don’t, that may be cause to suspend your access.