Chapter 13 filed can I still get a security clearance

hello I saw someone else pose this question, about getting a security clearance with a chapter 13 filing. my situation was I fell behind on mortgage payments due to lack of employment or low temporary employment. I finally secured a permanent position with the government, my online app I put down that I should be getting a modification(got one before many years ago) with the bank for my mortgage. but months later I was told by the bank that they will not grant a modification. due to some 2 mods in a five year period is not allowed, also as far as I know there was no way to update the online form. the mortgage company left me with only coming up with the back payments or foreclosing. I checked with a lawyer who advised filing a chapter 13 that way I can pay back the mortgage company using a structured payment plan as well as credit card companies which I did not have any issues with and keep my property, by the way I was uptodate on all bills except my main mortgage. will this affect my chances of getting a security clearance? I have a face to face interview with the inspector tomorrow should I disclose my current financial condition?

Yes . . . You need to provide updated information to your investigator. Documentation will help. You can still get cleared but you are going to have to provide a detailed explanation about how you fell behind and what happened with the mortgage company. The investigator and/or the adjudicator is going to want an explanation about why you have needed multiple modification before filing Chapter 13. This tends to indicate that you have been living beyond your means.

You may end up with a denial and an SOR but you can overcome that during your hearing. A clearance lawyer, at least a consult, may not be a bad idea.

Are there any other concerns on your SF86?

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Chapter 13 as I understand it means restructure, everyone gets paid. As such I think they are viewed at least slightly better than one where you discharge all debts and nobody gets paid. I agree with the nuance Ed points out. If you were living too close to the edge…it can place you right back in the same shoes again. Modify the lifestyle downwards, live within the means you have. Some attempt to take a sterile approach and declare making payments as “all good.” Not true. The behavior leading to the indebtedness is looked at, as well as what follows. I have numerous employees that filed for various bankruptcies. They are still with us. I know for a fact it is survivable, but not something to take on lightly. Definitely get a cleared lawyer to assist. Banks as well known as Wells Fargo and BOA tend to move very fast on foreclosure and you can quickly lose what you have.

went through the process with the investigator and was not in the room long, have to give him one doc. explained everything to him, fell behind due to lack of employment which happens to a lot of people (no income) to pay bills and saving will last but so long. regarding the modification according to bank policy no second modification with in a 5 year time frame first one was almost five years ago. other than that my background is pretty basic, will see how it goes. thx for the feedback.

Did you hear anything back yet?

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