Chapter 7 and Obtaining a Security Clearance

[bkbound09]

Hi All,

I filed for chapter 7 last year in October and I was finally discharged early in January of 2010!! YEAH!! Anyway, I am applying to jobs in the DC area and alot of the jobs I am qualified for may require the ability to obtain a security clearance, with the economy the way it is, Does anyone know how Chapter 7 is looked at in this situation, should I even apply?

[mtbc]

It depends a lot on the agency and security level: I've heard it's not impossible. Still, I was told by one agency recruiter flat out that my chapter 7 bankruptcy would rule me out. I've applied to some contractors, and once they learn of my bankruptcy I never hear back again, despite telling me initially that from my resume I look highly qualified. I wouldn't rule it out, if you only need Secret level you might whistle through, but do gird your loins for disappointment. Top Secret, you'd be lucky indeed, with the bankruptcy still so recent. Do bear in mind that different agencies do run their clearance procedures a little differently.

(Congratulations on the discharge though. (-: )

[HHM]

It depends. The BK is a factor, but it is rarely the deciding factor, a lot depends on why you needed to file BK. Also, if these are government jobs, the federal govt. cannot discriminate in employment based on a BK. You cannot control the individual prejudices of the hiring individuals, but most people I have talked to have had no problem getting or maintianing a top secret clearance with a BK.

[JackBondLove]

From my experience actually having a Secret clearance, it seemed that the only way that someone would be denied is if there basically a spy (LOL). I would tend to think that after filing BK, one would be in a much better position, since there is not the onerous debt obligations.

Now with that said, typically a private employer (contractor) would just rather not deal with a person who could be questionable in any way. Why hire someone if there is even the slightest chance that he could be denied? I could see the actual government taking
a more accommodating stance, since it would only be the taxpayer's money that would be wasted on a bad candidate (LOL!)

Long after my clearance had lapsed, an employer needing to get someone with a clearance (actually only an interim clearance), found me, and because I had the history of being accepted, I was considered as more desirous than others who had not, so I got the job (and the interim clearance a few weeks later.) I'm sure that such an employer would do a simple background check, find the BK, and say, "NEXT!"

[mtbc]

Mmm, I've wondered if part of my problem is that I haven't already had a clearance, so I'm just at too much of a risk for them of it being denied with the bankruptcy too.

[nc73]

Yes you are screwed if you have bk. I've had no luck so far in the DC area and most IT jobs here require clearance. Any large company will do a credit check for any job. Although after six months you should be ok to apply for secret, just won't get an interim which is required for some companies before you can start work.

[Amy26]

Please don't believe NC73. Yes it is difficult to find a job these days, however I currently work in DC and I was awarded a clearance with my bankruptcy active during my investigation. I had never had an investigation before and was never cleared prior.

I applied for my clearance in May of 2009 and I filed for BK in June 2009. The bankruptcy was not really an issue at all. They were more concerned with the situation surrounding why I filed and what kind of debts I had. I had to provide them a detailed list of all my debts and what I was discharging and what I was keeping. They were also concerned with how delinquent I was with the debts before I filed. I was very upfront about everything and it was not a problem.

The investigator said that if my clearance had been top secret they would have scrutinized it more, but it probably would still not have been an issue in the end.

Also, a company will not and can not do a credit check on you until you have been offered a position and you authorize them to check your credit. They cannot just willy nilly interview you and decide to check your credit for kicks. I would think that if they like you enough to make an offer, depending on the job, a flawed credit report may not be such a big deal.

What kind of work do you do? I could send your resume to our recruiter... lol.

[music12]

hey amy! haven't seen you in a while. glad you got your clearance. believe it or not, i just got a job offer! yay. finally, the light at the end of the tunnel.

[Amy26]

Music! How's it going? I'm happy to hear that. I hope things have been working out for you. I've been loitering in the rebuilding credit area a little bit... doing ok... still waiting for my condo to foreclose, but otherwise doing well.

[music12]

Music! How's it going? I'm happy to hear that. I hope things have been working out for you. I've been loitering in the rebuilding credit area a little bit... doing ok... still waiting for my condo to foreclose, but otherwise doing well.

i haven't been loitering there, just using my amex which survived the bk, paying it off each month. my score must be above 700 by now (it was 690 soon after discharge; i haven't checked since). i plan to buy a car soon with my new salary, we'll see how that goes. are your tenants still living in your condo until foreclosure?

it sounds like both of us are now success stories!

[Chucksoutalu]

When the Security Clearance paperwork is forwarded to (whatever agency) the review is completed and the agency will eithier deny, or give you certain guidance to clear up any questionable issues in regard to your finanaces. I was a reviewer of these security packages and when a person was actively engaged in fixing thier economic problems the GOV Agency usually responded in the affirmative for a clearance.

[katfzl]

public Trust Clearance

Finally have a job offer, but it requires applying for public trust clearance. Am a prior military reserve officer and had security clearance (expired). The financial issues and events are current. I was laid off a year ago and I am still unemployed. Have a few credit cards and two medical bills currently outstanding. Some accounts are in collections, some are in hardship repayment programs. Made attempts to do my best to deal with situation, but impossible without job. I have a house I left in another state when I accepted the position I was subsequently laid off from 1 year later. I bought it at top of the market and couldn't sell when we moved. I rented it out due to its swiftly declining value but had to evict tenants for non-payment and house sat vacant 6 months. Got behind on loan, found renters, modified loan, then was laid off. Rent didn't cover mortgage, once again got behind and had to do another workout package to put it up for short sale. It is underwater, will do a deed in lieu if it doesn't sell. It was a VA loan, which is another issue I'm concerned about.
So, am I *& out of luck? No chance of passing public trust clearance? It is in my accounting/finance related field. I will do my best to supply a lengthy and detailed report of what happened on my application.
Lost a job and now have bad credit, and worried I can't get a job because of my bad credit due to job loss...