Two weeks after filing bankruptcy, Rod got his security clearance.
Rod contacted me from a military base in the Midwest. The military wanted to give him a new assignment, in the DC area, with more responsibility. His wife and children had already rented a place and moved, while he was awaiting orders.
At the last minute, he couldn’t go.
Rod’s credit had gotten messed up with a repossession and he couldn’t get cleared to take his new assignment. So, he called me.
Rod’s credit had gotten messed up with a car repossession. So he could get his security clearance.
His chain of command told him he needed to file bankruptcy right away.
We got the papers signed and sent into the court within a week.
Five weeks later we met at his bankruptcy hearing. Rod told me he had been cleared to take the new job three days after his bankruptcy was filed. He was on the job in two weeks. Life was great.
Have you heard filing bankruptcy is bad for your security clearance?
Many people still believe that filing bankruptcy will damage your security clearance. (I talked to one just last week.)
Rod’s experience shows the opposite.
Now for sure, the best thing is to never get into financial trouble. But if you do, the military wants you to clear it up. NOT cover it up.
The chain of command really wanted Rod in that job. But they couldn’t get him cleared until he cleaned up his credit. Bankruptcy cleaned up his credit.
(Careful readers may have three questions. First, was Rod eligible to file in Virginia? Rod had signed a lease three months before, and had moved his family. I said Rod became a resident when he signed the lease. And nobody had any reason to question it. Second, did I have Rod sign the papers without ever meeting him in person? Yes I did. That’s strongly discouraged, but since he was away on military assignment, I decided in this case it would be OK. And I was careful to get enough ID I was sure I knew who I was talking to. Third, is this typical? No. I’ve NEVER heard of a security clearance problem being fixed in three days. Obviously the chain of command really wanted Rod available for this job.)