High Risk Public Trust & Chapter 13 Bankruptcy

Hello all,

I’ve read every forum I could find but haven’t found a situation quite like mine. I’m currently 8 months into a 100 % repayment Chapter 13 bankruptcy, and I’ve never had a delinquent account.

Essentially a few life factors (including a loss of household income due to divorce and keeping the home on a single income because in the market was worth less than I could sell it for) within the last few years and being laid off in December… lead me to filing for bankruptcy in February while I continued to look for work. Before bankruptcy I had never had a missed or late payment let alone a delinquent account. I had high debt utilization the past few years supporting a household on a single income but I made enough that I could make payments. When I was laid off, instead of letting several accounts become delinquent I established a 100% repayment plan that would allow me to start payment at a lower amount and increase as I started working again. I resumed employment in May this year and I’ve made every single payment towards my bankruptcy plus several hundreds of dollars over. I am on track to pay my bankruptcy off in 3-4 years instead of 5.

I’m worried that this recent of bankruptcy will effect my suitability for a high risk public trust that I am completing an sf85p for now. Otherwise I am a clean candidate but hoping someone has seen/heard/dealt with a bankruptcy and suitability before.

Is the amount in my bankruptcy considered “bad debt”?

Other posts have addressed this issue. Bankruptcy is a legal means to address debt and shows you have taken positive steps to resolving financial issues. Had you not taken action and just tried to walk away unresolved then it would be an issue. Life events happen and are taken into consideration when looking at one’s background. This should not affect eligibility for public trust or clearance positions.


Concur Marko. I had several employees file for bankruptcy, and maintain TS SCI clearances. As Marko said, Life happens. I commend you for taking the bull by the horns, facing it down and steadfastly making payments. Be proud of the progress you made and how you handled it.

Just wanted to update here that I have an EOD and it was a pretty painless process, up front and detailed enough that it moved very quickly.


Outstanding! Thanks for the report back as it validates our experiences and advice for others.

Did you do an in-person interview? How did it go?