View Full Version : Bankruptcy
big.assassin
12-29-2008, 00:02
Gentlemen,
A question for you all. I have fallen on some difficult times financially. The company I was working for dissolved and shortly thereafter I broke my leg and with the lack of income and mounting medical costs I have been forced to contemplate bankruptcy. I have had perfect credit up to this point in time but now have over $65K in debt and am struggling to maintain payments. My question is, if I file bankruptcy now how long until the Army may see fit to grant me a Secret Clearance and allow me to enlist on an 18X? I previously held a Secret clearance back in the Navy. Not sure if that helps any. I'm 24 right now so I have 5 years before the SF cut off. Let me know if you all think a BK would permanently disqualify me from ever obtaining a clearance. Have looked into it and get back and forth answers.
Thanks,
Matt
I would do whatever it takes to not file if you truely want to get an 18X contract. I am not a security investigator and I know little about the arbitration process. But I have had several clearances and I do know what questions have been asked of me in the past. I would submit that credit counseling will serve you much better than a chapter 11 and will more than likely look good to a security investigator.
PPersonally, I do as much as I can to keep my credit in good standing due to the fear of losing my clearance. I would highly suggest you talk to a Special Forces recruiter and/or an army credit counselor prior to making that decision. Anything worth having hurts!
Just my two cents.
Bankruptcy is a bit tougher on the debtor due to new laws in 2005.
I don't know if all states are the same but I believe in some at least you can pay very minimal amounts towards the debt and in the courts eyes it shows an effort of good faith in making good on your debt and it can prevent the creditor from filing for foreclosure.
Talk to a credit counselor and a attourney that deals in such matters and see what you can do to avoid it.
Kyobanim
12-29-2008, 05:17
The key is to keep the lines of communications open with your debtors and document the communication. A bankruptcy won't kill your ability to get a clearance, but if you let the bills hang without making effort either through a reduced payment plan, credit councelor or whatever then chances are you won't get it.
What they are looking for is responsable action.
Here's an interesting link. http://www.dod.mil/dodgc/doha/industrial/2008.html
The Reaper
12-29-2008, 08:53
A bankruptcy indicates not just the inability to manage your finances, but the potential for manipulation and espionage in return for money. It is one of the first questions the investigators ask.
Not sure that it would prevent you from getting a clearance, but it would make it much more difficult. I would do whatever I could to avoid bankruptcy.
Best of luck.
TR
big.assassin
12-29-2008, 11:35
Thank you for the responses. That was a great link Kyobanim thank you for finding that for me. I will continue to do what it takes to make my payments on time and try to find other avenues other than bankruptcy.
-Matt
Eagle5US
12-29-2008, 11:56
In the short term (near to immediate future), consider what you are doing towards your income.
I do not know what your current employment status is, nor your health and ability. However...
But if you aren't working, a job, ANY (honest) job is better than no job. If possible for your situation, even 2 jobs. Granted minimum wage is not a six figure income, but it is an honest wage. Even things like pizza delivery can be lucrative, especially now that gas prices are back to somewhat "normal".
Just something to think about...
Eagle
Sorry to hear about your problems...
Check out Dave Ramsey. He is hardcore, anti-debt and has great steps to getting out of debt and building a solid financial future using hard work and perseverance , I'm sure if you call there offices they would send you a copy of a book called Total Money Makeover.
Hey, if you're still immobilized from your leg, or if it's not 100%, there's a directory of home jobs - usually above minimum wage pay for simple stuff like ornament assembly jobs or internet searching.
http://www.easywork-greatpay.com/home_workers_directory.asp
This is real FYI I have contacted them before.