{"id":2666,"date":"2014-09-01T08:00:34","date_gmt":"2014-09-01T13:00:34","guid":{"rendered":"https:\/\/nybankruptcy.net\/main\/?p=2666"},"modified":"2018-12-06T03:26:39","modified_gmt":"2018-12-06T03:26:39","slug":"bankruptcy-usually-has-little-effect-on-military-security-clearances","status":"publish","type":"post","link":"https:\/\/nybankruptcy.net\/main\/bankruptcy-usually-has-little-effect-on-military-security-clearances\/","title":{"rendered":"Bankruptcy Usually Has Little Effect on Military Security Clearances"},"content":{"rendered":"

Soldiers in the U.S. military are often debtors too, and sometimes they need to file New York bankruptcy to get a fresh start. Occasionally the biggest problem for them is filing bankruptcy in the country<\/a> where they’re stationed. Other times the question is how a bankruptcy filing will affect soldiers’ security clearances, which are crucial for keeping their jobs. The good news is that for the most part, bankruptcy has little effect on military security clearances. The reason is that like credit reporting bureaus, the military treats filing bankruptcy as an act of taking control of one’s finances as opposed to defaulting on large debts.<\/p>\n

In a Q&A article in the Navy Times<\/em>, the lawyer-columnist gives a more cautious assessment of a soldier-debtor’s security clearance status when a bankruptcy is involved. Although it’s certain that a bankruptcy filing won’t be ignored by military authorities, on its own it won’t disqualify someone from obtaining a higher security level. The military investigates soldiers’ entire backgrounds and makes its decisions on a case-by-case basis. In fact, usually it’s the reason the soldier amassed so much debt in the first place\u2014not the bankruptcy itself\u2014that results in a denial of security clearance. For instance, foreclosure on a home is more forgivable than discharging gambling debts.<\/p>\n

A few other factors affect the military’s decision to award or rescind a soldier’s security clearance:<\/p>\n