Bankruptcy and Security Clearance
I have been asked more than once whether filing bankruptcy can adversely impact the debtor's security clearance with a private business or government agency. Most lawyers state that a bankruptcy actually improves security clearance. The typical employer wants to make sure that financial problems do not lead to more serious personal problems affecting employment such as drug use, alcohol, or high interest borrowing. Bankruptcies solve financial problems, relieve stress, and usually improve concentration and performance at work. I am not aware of any federal law that makes bankruptcy an impediment to government security clearance.
You may not be able to help. My housemate has not payed debits owed to creditors (Benificail Finance & Providian) due to lack of funds. She is barley able to pay her half of the rent & utilities. Benificial has taken her to court. She has tried to follow up as instructed w/their attorney, he never responds to her phone calls. It has been almost 2 months. Today she was going to use her debit card and found her bank account ($300.00 which was this weeks pay) frozen and all taken by Benificial! She has the $1.00 she left home with this morning, nothing else. She cannot afford an attorney to file Chapter 7. She really does own nothing. She is 60 years old. We have been friends for years, but I cannot support the cost of the rent etc without her money going into the fund! What can she do? She has to live somewhere and she cannot even feed herself at this point! I cannot turn her out on the street and I need to be fair to myself at the same time? Please help if you can!