Castle Law Office Blog | Missouri & Illinois Bankruptcy Legal Blog

Will bankruptcy affect your security clearance?

It is natural to wonder exactly how a bankruptcy will affect your life. And your job is often something you’ve dedicated a substantial amount of time and energy to. If you have a job that requires a security clearance, you may be wondering how it will be affected once you’ve decided to file for bankruptcy. Could your security clearance be revoked?

Never in my more than 15 years experience have I had a client’s security clearance revoked. Of course, that doesn’t mean that it couldn’t happen, but it is a pretty good indicator that it isn’t likely. The factors that go into approving a security clearance are different for different types of jobs but, typically, they just want to make sure you are not the kind of person who may feel like you would have no choice but to share top secret information or do so in exchange for money. Frankly, being under a lot of debt makes you more likely to do that.

Filing bankruptcy, however, shows your employer two very positive things. One is that you have nothing to hide. You must be truthful and outright with all of your information when going through a bankruptcy and your employer will know that you have the ability to tell the whole truth about your financial situation. The other is that you are willing to take responsibility for your debt. Bankruptcy is about being responsible for the debts that you have incurred and doing what you need to take care of them.