Legal Question in Bankruptcy in Virginia

security clearance

Can filing for bankruptcy cause a person to lose a secutity clearance?


Asked on 11/22/97, 4:40 pm

2 Answers from Attorneys

William Bray Perry & Bray

Bankruptcy and Security Clearance

I don't know the specific legal answer, but I know someone with security clearance who has filed bankruptcy and only needed to file an explanation afterwards. I would suggest you contact someone in the security field at your agency, anonymously if possible, and pose the question. Security clearances may be governed by regulations not a part of the statutory codes and not readily accessible to me. Also, federal law generally forbids the discharge of a person for filing bankruptcy. I have not checked that statute lately for any exceptions that may apply. If you need to know about a specific occupation, then check back. We do handle personal bankruptcy cases in the Richmond area.William B. Bray

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Answered on 11/24/97, 2:35 pm
Daniel Press Chung & Press, P.C.

Bankruptcy and security clearance

The bankruptcy code forbids governmental discrimination on the basis of bankruptcy filing, and a filing alone cannot constitute sole grounds for denial of a clearance. In fact, it might help, as debt problems can cause clearance difficulties (there is aperception that you are more susceptible to economic incentives to commit espionage if you are in dire need of money). I would suggest that discreet inquiry be made of yourclearance officer after discussing the factswith your bankruptcy lawyer.

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Answered on 11/25/97, 1:18 am


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