Posted on June 7, 2009 at 11:40 pm I read that thread about credit card debts and security clearances, and it could be referring to pre-bankruptcy filing, how about post-bankruptcy? Would somebody who is working in the army be stripped of clearance, be denied of promotion, or lose his job if he's filed bankruptcy?

Posted on June 7, 2009 at 11:50 pm It is a case to case basis, I think. If you are asking if having bankruptcy,  on a military personnel's report, is considered a security issue in the military, the simple answer is "no" as the word "bankruptcy" does not appear in their Adjudicative Guidelines (For Determining Eligibility For Access To Classified Information). It just says "Financial Considerations."

Posted on June 8, 2009 at 12:16 am The military would actually consider bankruptcy as a positive effort on their member's part to fix his financial situation. From what I heard, it is how the personnel dealt with debt that is important, and not that he was in debt.

Posted on June 8, 2009 at 1:03 am Delinquent debt is one of the most common "financial concern" in the military that can affect security clearances. The causes of debt are considered more important than the amount of debt. If it is proven that the debt was caused by irresponsibility, then the personnel's reliability, trustworthiness, and judgment become questionable. On the other hand, if the debt was due to situations that can't be helped, and if the personnel responded/acted on the debt responsibly--as in he/she sought a government approved debt relief program like bankruptcy--then that is a sign that the personnel is not just responsible but also ethical.

Posted on June 8, 2009 at 1:08 am Would somebody in the military be eligible for other debt relief programs? I am asking because I read somewhere that bankruptcy should be the last resort, and if so, my question is the same, would those debt relief programs affect the security clearance?

Posted on June 8, 2009 at 5:39 am As was stated before, as long as the debt has been taken care of in a responsible manner, there shouldn't be any problem with the clearance, and to add to the other options that  servicemember could avail of, they can take advantage of the SCRA or Servicemember's Civil Relief Act. It is an expansion of the SSCRA, which gives the members assistance for debt incurred prior to military service, and it is only for active members or those who are on duty:1) Protection from eviction  for military families that are paying $1200 on rent. 2) Termination of pending lease - for members on active duty and have been reassigned to a new location for 90 days or more. 3) A 6% interest limit on all credit cards incurred prior to military service, during, and after. 4) Maximum policy coverage for life insurance to 250,000 dollars - for members of the Reserves or the Guard. 5) Exemption from “doubling of taxation” on an active duty service member’s spouse if he/she does not work in the same state as the couple's permanent residence.