If you work for the military or a military contractor, you may know that your security clearance can be affected by your credit score. So how can bankruptcy affect your security clearance?
First, there is nothing that demands that your security clearance be altered automatically because of a bankruptcy. Each clearance is examined on a case-by-case basis. Your credit history will be looked at, as well as the circumstances that led to the bankruptcy. Your job performance and relationships with superiors will also be considered.
*Remember: Filing bankruptcy helps improve your financial situation. Filing Bankruptcy does not make it worse. So, the fact you have taken care of your outstanding debt is considered a “plus” not a “minus” in the evaluation process.
Filing may raise a “concern” with investigators. Therefore, it could result in you receiving a Statement of Reasons. When you get the SOR, respond immediately and provide your version of events.
Having a large amount of unpaid debts may actually make you more of a security risk, so dealing with your debt through bankruptcy can be viewed as a responsible action. In this view, it would be favorable to file Chapter 13 over Chapter 7 since Chapter 13 will repay more debt.
Above all, make sure you are open with your chain of command and have good communication throughout the process.
Over the past 34 years, the Law Offices of Christopher A. Benson has helped over 2,300 of Washington clients take control of their financial situation. We can review whether bankruptcy may help stop your garnishment and address your debts through a repayment plan. Sources: 11 U.S.C. § 362(a)–(d); U.S. Courts: Chapter 13 bankruptcy. If money has already been garnished, recovery may be possible in some cases, depending on the timing of the transfers, applicable exemptions and other legal requirements. A refund is not automatic or guaranteed. Sources: 11 U.S.C. § 547(b)–(c), (e)–(g); 11 U.S.C. § 522(g)–(i); 11 U.S.C. § 550(a). But you have to act quickly–call (253) 815-6940 for your free consultation, or email us today. Evening and weekend appointments available.
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