Intent to Deny Security Clearance

If you have military security clearance or an assignment to a sensitive position in the Navy or other branch of the armed forces, you must maintain your finances responsibly, either paying your debts or filing bankruptcy so long as done in good faith.  Otherwise, the military security section will deem you too irresponsible to be trusted with handling sensitive information and will revoke or deny your military security clearance.  This usually happens through a letter of intent.

Letter of Intent to Deny Eligibility for Security Clearance and Bankruptcy

When the military determines that you are not financially responsible and should be denied security clearance, you will receive a letter of Intent to Deny Eligibility for Security Clearance and Assignment to a Sensitive Position.  If you have received such a letter of intent, you have to act fast.  Typically, you have only 15 days to respond and can respond through your security manager.  Even if you file bankruptcy San Diego, you still have to respond to the military.  If you don’t respond in a timely and appropriate manner, or you fail to respond, the decision will become final and you will lose your military clearance. 

The Concern of the Military

According to the military’s Office of Personnel Management Guidelines, when you fail or are unable to live within your means and cannot satisfy your debts and otherwise meet your financial obligations, this can show poor self-control, lack of good judgment, and unwillingness to abide by rules and regulations.  This type of conduct, in the military’s eyes, calls into question your reliability and trustworthiness to protect classified information.  In addition, people who are financially overextended, are more likely to engage in illegal acts to generate money to pay their obligations.  This concern of the military is the reason why you will receive a letter of  Intent to Deny Eligibility for Security Clearance and Assignment to a Sensitive Position when you fall behind on your credit card payments or other financial obligations.   If you don’t become current, you will risk losing your security clearance.

Demonstrating Responsibility

Filing bankruptcy can demonstrate financial responsibility in that you are taking control of your finances and starting to live within your means again.  This does not mean that filing bankruptcy in San Diego will always save your security clearance with the Navy, Marines or other branch of the armed forces.  But in many cases, as long as there is not fraud or wrongdoing in connection with your case, then it can save you military clearance.  In addition, by filing a San Diego military bankruptcy and obtaining a fresh start, you are no longer overextended, so the military’s concern about overextended people engaging in illegal acts no longer applies to you.  In most cases, as long as the events that caused you to fall behind on your credit card payments or other obligations are not likely to occur again, have been addressed by your filing, and there is no fraud or wrongdoing in connection with your case, you will be able to keep your security clearance after bankruptcy.

This entry was posted in Bankruptcy.


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