Hello my name is Andrew H Griffin the third i’m a california bankruptcy attorney with over 35 years of experience being in san diego at military town i’m often asked can i lose my security Clearance if i file for bankruptcy this is a question that i’ve hear often from members of the armed forces employees of the transportation security administration or others in a federal service or employment In my experience the answer is No, in fact i’ve had a number of occasions over the years where people seeking employment with the tsa or a promotion have? Been been told to go file for bankruptcy i have also had people in military service that have not only not loss of security clearance because of bankruptcy i’ve actually received a promotion during or after filing bankruptcy why because i person in dire financial straits is that risk of making a poor decision such as taking a bribe in an effort to get out of debt since in chapter 7 can get rid of most debt and chapter 13 and allow the debt to be paid over a reasonable period of time The motivation to make unwise decision is gone but if you don’t have to take my word for it here is what the united states air force academy legal office says about bankruptcy hope the status of your security clearance can be affected but it is not automatic the outcome depends on the circumstances that led up to the bankruptcy and a number of other factors such as your job performance relationship with your chain of command the security section will weigh whether or not bankruptcy was caused primarily by an unexpected event such as medical bills following a serious accident or by financial irresponsibility Security section may also consider the recommendations and comments of your chain of command and co-workers? this is an issue that can be argued in both ways so as a practical matter your security clearance probably should not be significant factor in making your decision about whether to file bankruptcy the amount of your unpaid debts by itself my jeopardy your clearance even if you don’t file bankruptcy and that sense not filing for bankruptcy Make you more of a security risk do they were the size of your outstanding debts by the same token using a government approved means of dealing with your debts may actually be viewed as indication of financial responsibility eliminating your debts to bankruptcy and make you less of a security risk There’s no hard and fast answer there with one exception and never hurts to have the reputation with your co-workers and your chain of command uncooked in other words filing bankruptcy is not the reason security clearances revoke a more important issue is how your debts were incurred for example debts incurred from the gambling or consistently living beyond your means are heavily found upon debts from circumstances outside your control such as jobs loss to the economy decrease household income because of a divorce or large expenses or medical treatment are more easily mitigated finally i would note that section 525 of the bank code states that quote a governmental unit may not deny Revokes spend or refused to renew a license permit charter franchises are even similar grant to condition such a grant to discriminate with respect To such a grand against an i employment terminate the employment of or discriminate with a respect To the employment against a person that is or has been a debtor under the bankruptcy code Solely because the debtor has been a debtor under the bankruptcy code this is andrew h griffin the third at andrew griffin law is calm today i hope you understand the bankruptcy process You want to learn more about bankruptcy order andrew griffin laughs come to get a free copy of my book