Recent bankruptcy and interim security clearance

SECURITY CLEARANCE Q&A
1

I recently received a TJO for a DoD position requiring top-secret security clearance. I am asked to fill sf-86 for interims security clearance. I have a recent bankruptcy, should I be worried ?

Here’s some context:

  • I was laid off last October and was unemployed until August of this year.
  • I filed for bankruptcy in May and it was discharged in August.
  • Aside from the bankruptcy, I have no delinquencies, late payments or collections. My current credit score is in 680s.
  • I am a naturalized US citizen with no foreign travel in the last decade and no foreign contacts apart from parents who are living in abroad.

Has anyone here been through a similar situation or have insights into how this might affect the interim or final clearance process? Any recommendations or information would be greatly appreciated.

2

Personal experience here. My spouse and I filed for bankruptcy while I held a clearance. I did not lose my clearance, but it was a TON of paperwork and follow up. Be prepared to discuss in detail what led up to the filing, what accounts were behind (if they went behind), amounts of payments, dates of payments, etc. Best bet is to pull out your bankruptcy paperwork which should include a list of assets and liabilities. Since you say “discharged” I’m assuming you filed under chapter 7. If you filed under chapter 13 you will need to discuss the repayment plan.

You will be grilled about it, be honest and forthcoming.

Good luck.

1 Like
3

Thank you. Yes it’s chapter 7. I will keep my bankruptcy paperwork ready.