A sampling of Defense Office of Hearing and Appeals (DOHA) security clearance hearings from 2007 showed that about 50 percent of clearance denials involved “Financial Considerations.” This was two times greater than the next most frequently listed issue for clearance denial.* Guideline F: Financial Considerations is one of 13 criteria listed in the Adjudicative Guidelines For Determining Eligibility For Access To Classified Information.
Excessive indebtedness increases the temptation to commit unethical or illegal acts in order to obtain funds to pay off the debts. Most Americans who betrayed their country did it for financial gain—about half were motivated by a real or perceived urgent need for money and about half by personal greed.
Aside from compulsive/addictive behavior, deceptive/illegal financial practices, and unexplained affluence, the remaining potentially disqualifying conditions detailed in Guideline F can be boiled down to one security concern—delinquent debt. High debt to income ratio and excessive indebtedness are listed as a potentially disqualifying condition, but this rarely comes into play absent any past or present delinquent debt or obvious signs of unexplained income. Low credit scores are not listed as a potential disqualifying condition, because factors unrelated to debt affect credit scores.
DELINQUENT DEBT
Delinquent debt is by far the most common financial concern. In adjudicating these cases the following factors are taken into consideration:
• Cause of debt
• Response to debt
• Amount of debt
Cause of debt is generally more important than the amount of debt, because it reveals more about a person’s reliability, trustworthiness, and judgment. Of people who seek credit counseling, roughly 50 percent are due to irresponsibility. If the debt was caused by irresponsibility (including reckless behavior) that is likely to continue, the problem is magnified. If the debt occurred due to situations beyond the applicant’s control and the applicant is handling the debt in a reasonable manner (including bankruptcy or debt consolidation), the significance of the problem is substantially reduced.
Response to debt is evaluated by the things people do (or don’t do) about delinquent debt. How people deal with debt is often a decisive consideration. Those who ignore their financial responsibilities may also ignore their responsibility to safeguard classified information. Classic indicators of irresponsibility and unethical behavior are:
• Changing addresses without notifying creditors
• Failure to take reasonable measures to pay or reduce debts
• Knowingly issuing bad checks
• Increased credit card use immediately before filing for bankruptcy
The words, “bankruptcy” and “credit counseling” do not appear anywhere in the Adjudicative Guidelines. This is because both bankruptcy and credit counseling can be considered positive efforts to get one’s finances under control. What is important is the underlying reason for the bankruptcy or credit counseling.
Amount of debt focuses primarily on the delinquent amount, but as previously mentioned total debt, if it appears excessive, may also be taken into consideration. Significant delinquent debt is a security concern. For total debt there is a rule of thumb used by credit counselors. If an individual’s minimum monthly payments for consumer credit (excluding credit cards that are paid in full at the end of each billing cycle and mortgages on primary homes) totals more than 20 percent of monthly take-home pay, there is a financial problem. This does not apply to unmarried military personnel who live in barracks and eat in mess halls and others who are similarly situated. According to Office of Personnel Management (OPM), Federal Investigative Notice No. 06-07, OPM does not automatically expand investigations for financial issues, unless:
• Credit report reflects current aggregate delinquent debt totaling $3,500 or
• Bankruptcy within the past 2 years or
• Bankruptcy within the past 3 to 5 years with evidence of current credit problems.
This does not mean that delinquent debt totaling less than $3,500 is not significant, but it does suggest that, absent any aggravating circumstances or other security issues, the government is not overly concerned about small amounts of delinquent debt. OPM considers bankruptcy only as a trigger for further inquiry.
* Guideline E: Personal Conduct was cited in about 45 percent of the cases, but was usually a issue involving falsification directly related to other adjudicative criteria.
William H. Henderson is a retired security investigator, author of Security Clearance Manual: How To Reduce The Time It Take To Get Your Government Clearance, and regular contributor to ClearanceJobs.com and ClearanceJobsBlog.com
Ben (FL),
First of all, your “employer” can not revoke your clearance eligibility. Only an adjudication facility can. However, if your employer/supervisor is inundated with calls from creditors, they can suspend your access pending investigation and re-adjudication. In my opinion, if you were granted with the info on your foreclosure known to the adjudication facility, I do not think a revocation is in your future. I suggest you maintain your good credit standing and work with the mortgage company to minimize any debt that may be assigned to you upon completion of the foreclosure process. Good luck.
Bill L. (Annapolis, MD) on August 31, 2010 at 12:42pm
I currently hold a secret security clearance that was issued in May 2009. I am currently in a foreclosure status for my house because of my recent divorce. I voluntarily stated this situation during my application and I was granted the clearance anyway. If my foreclosure become finalized, is that a reason for my employer to revoke my clearance. I have no other issues with debts, I am current with all of them and they are just a couple of credit cards and student loans.
Ben (Florida) on August 27, 2010 at 6:24pm
Onyximo (MS):
If all of your financial problems came about solely because of your unemployment, I think you have a reasonably good chance of being granted a final TS/SCI. Interim SCI is less likely because of your past credit problems. Even in completely clean cases interim SCI depends on the agency and whether there is a critical need for an applicant's services.
William Henderson on August 26, 2010 at 1:18pm
James Walker,
Yes, the debt for $8k will have an impact on your investigation/clearance determination. Disputing the debt is a good first step. If the credit bureau responds that the debt is valid, the next step would be to contact the company and ask for documents regarding the debt (when established, where it came from, etc). Their response may give you a clue as far as whether it is yours or you were a co-signer, or possibly identity theft. The mitigating factor for this is your “good faith effort” to contact the creditor, establish responsibility and resolve the debt, whether it is reassigned to another party; already paid to the original creditor; you create a payment plan, etc. The smaller debts you cited are not a factor. Good luck.
Bill L. (Annapolis, MD) on August 26, 2010 at 12:20pm
To add to my previous entry... I have laid every single thing out on my clearance application. EVERYTHING. Any debts, child support, past debts, paid debts, unpaid, and anything else they asked about. I had called about traffic tickets I received on traffic cameras and found they were dismissed (faulty cameras) and I even told them about that.
I was completely honest. If it asked for birthmarks I would have put it! I would LIKE to be assured that I'm freaking out for nothing. However, I WANT to know if I should be freaking out more or less.
Again, thank you for any help!
James Walker ((San Diego, CA)) on August 24, 2010 at 5:23pm
Am I too nervous or just enough?
I am currently in a job requiring a Secret clearance for the Navy. I am Active Duty and on an Interim clearance. However, I just finished my E-QIP and my security officer is releasing it today. I don't have any bankruptcies on my credit report.
There are a few things that are negative though. Most of the few (7) "potentially negative" items are either a $0.00/paid or add up to just under $1400.
The 7 items are:
-1 I am trying to dispute for $220 or so.
One I am making payments on with a $540 balance left.
-1 that I do not know of for just over $600.
-1 That I found was paid but not reported for just over $200 (did not count this in the total.
There are three others that have a $0.00/"paid collection" items.
-1 since 2004,
-1 since 11/2009 (unknown from "CRD PRT ASSO"), and
-1 since 2008 (which is also the $540 one that I'm paying)
I would Imagine that with a long list of current and past debts that are being paid on time and with a good 1-2+ years of the history that the above mentioned "potentially negative" ones should be understood.
Is that a fair assumption?
If you've read this far then you may notice one missing. The last one is what I'm worried about
it is for "KIMBALL TIREY STJOHN" and it's for $8,576! I have no idea who or what it's for. I've submitted an online dispute, but, I'm worried. It's been there since early 2004 and report says: "Experian-Seriously past due, Equifax-Unpaid, TransUnion-Collection".
Is this going to kill me on my clearance? As I said before, I have plenty of current loans (secured and unsecured) being paid and current in good standing. That last one freaks me out! I love my job and duty station very much and I would never do anything to compromise it. What is your take?
I hope this isn't too big also....
-James
James Walker ((San Diego, CA)) on August 24, 2010 at 5:14pm
Mr. Henderson.
What do you think my chances are for an interim and full TS/SCI. (Up for a DoD contracting position).
For the past year I have had some fairly serious credit issues initiated by several months unemployment. Had 5-6 collections, 4-5, sporadic 90-180 late periods indicated, 2 public records one for a tax lien erroneously placed, and about 12,000 total delinquent debts until the early part of the year where I paid in full or settled ALL delinquent debts included the 2 public records where one was released. I have documentation and receipts for all settlements/pay-offs and records of financial counseling/plan of actions from a federally recognized financial consultant.
As of almost a year I have no delinquent debts and all other installment loans (45k in student loans, car loan) indicate paid as agreed or deferment. I also have current copies of all 3 credit reports indicating no delinquencies. I also was fired last year from a company that went bankrupt 1 month afterwards. (The termination wasn't for performance but a mistake they admit on their part by hiring the skill set that didn't apply to their project). Never did drugs and never been arrested or misdemeanors. I currently make 6 figures and live well within my means according to the financial consultant. Am I doomed?
Onyximo (MS) on August 18, 2010 at 1:33pm
Mr Henderson,
You were absolutely right! They denied my interim, but informed me that I am still a candidate, but it will take longer to process my background check. Hopefully, it will clear and I will be able to go to work. Thanks again for your informative answers! Very Helpful!
Terry (Marshfield) on August 16, 2010 at 8:45am
I have a contingent offer requiring a top secret clearance. I have a chapter 13 dismissed 2 years ago. I have a few small charge offs and a couple small delinquent accounts. I also am in the process of modifying my mortgage for the second time. It showing past 120 days late on my credit report. I am in the process of calling all of my creditors who I owe and workout a payment plan. What are the odds of me acquiring a ts clearance?
Droi (PA) on August 14, 2010 at 10:07pm
Mr. Henderson,
Thanks very much for your straightforward answers! I will just wait and see what they say, if anything. Wish me luck.
Terry (Marshfield) on August 13, 2010 at 5:49am
Jody Sanchez (DC):
Sorry but I am unable to answer questions about DHS security clearance processing, because DHS is not a monolithic agency. Many of its component agencies do things on their own and do them differently. If the adjudicative office is asking for more information after the investigation was completed, that's a good sign. I assume you already went through a SPIN and the investigation was closed. I can't give you an opinion about your chance of getting a clearance because you provided way too little information.
William Henderson on August 10, 2010 at 8:21pm
Terry (Marshfield):
It's a good thing you gave the investigator as much info as you could. Unfortunately for a contractor MRPT position federal agencies are not required by any overarching government regulation to give any reason for an adverse "fitness" determination, and there is no right to rebut or appeal an adverse determination. Some agencies will advise an applicant of why they were not considered "fit" for the position and offer them a chance to rebut, but it's strictly based on an internal agency policy.
William Henderson on August 10, 2010 at 8:11pm
Hello,
I am in the middle of receiving a secret clearance for a position with DHS. I have financial delinquencies that are under 2k but I had two repos where one amounted to 11K. I sent information to PSU showing that I am with a debt consolidation company and I have been able to remove some items off of my report due to errors by the collection agency. I was laid off from 2009 until now and I am finishing my degree in Accounting with almost a 4.0 GPA. I can always wait to be rehired for this fall/winter with the company, but I want a solid career path that the GOVT can provide. Do you think that I can be granted the secret clearance? Do you know how long it may take for me to receive my clearance from submitting the required information to the Personnel Security Specialist? Thank you for your time.
Jody Sanchez (DC) on August 7, 2010 at 5:56pm
"There are procedural differences in MRPT positions depending on the status of the position. Is it "competitive service," "excepted service," "temporary," or a contractor position?"
Mr. Henderson, Thanks again for your answer! It is for a contractor position. I saw the investigator Monday and provided everything I could that showed our bankruptcy stems from the loss of our travel related business that went down the tubes after 2008. I can only hope for the best. Wish me luck.
Terry (Marshfield) on August 7, 2010 at 3:35pm
Shane (Iraq),
Your scenario is confusing in that you state you are currently cleared by DOS and are transferring to DOS. Anyway, the “theory” is that if you are transferring within the government at the same clearance level, you should not be subject to an additional investigation. In “reality”, some agencies continue to conduct new/duplicate investigations anyway. Also, if you are going from military to a civilian status, a new investigation is normally required. In my opinion, if your credit report is good when the investigating authorities check it, you should not have a problem having your clearance re-granted. Good luck.
Bill L. (Annapolis, MD) on August 5, 2010 at 9:45am
I'm currently working under a DOS clearance. My clearance was granted to me 07/2010. I'm now transfering over to a DOS clearance. I had some credit issues that occured over 7 years ago, but they are still haunting me a little bit. I paid in full my collections and have good history for the past 4 years or so, but I'm wondering if the things in the past would prevent me from getting a DOS interim clearance.
shane (Iraq) on August 4, 2010 at 6:00am
Terry (Marshfield):
There are procedural differences in MRPT positions depending on the status of the position. Is it "competitive service," "excepted service," "temporary," or a contractor position? Agencies can be rather arbitrary in deciding cases for all categories except "competitive service" appointments. Also every position can has job-specific suitability criteria (i.e. absolutely no prior tax problems for IRS agents). See my article on "Employment Suitability Versus Security Clearance" post on this website.
William Henderson on August 3, 2010 at 1:25pm
UNCSHOOTER4 (Fort Bragg),
The key to your situation will be the status of your finances when your credit report is conducted. If your accounts are listed as current, paying as agreed or a similar status, you should have no problem being granted TS/SCI. However, if the accounts read past due, placed for collection or a similar status, you will be interviewed specifically about your finances and the companies will be checked individually, causing your investigation to be longer to completion. I recommend you get a copy of your credit report from the 3 major reporting agencies to see what they say before you complete your SF 86y/eQIP. Good luck.
Bill L. (Annapolis, MD) on August 3, 2010 at 9:04am
Due to popular demand and our rapid growth, we launched a new private security clearance question and answer service. Our new service grants the following:
* Complete privacy – your questions answered out of public view
* Priority service – your questions get answered first, before our blog and with no delays
* Complete answers – your questions receive detailed answers with references and links where applicable
* Guaranteed answers - your questions are guaranteed to be answered
Find out more: http://www.clearancejobsblog.com/new-security-clearance-question-and-answer-service
Eric (ClearanceJobs.com) on August 2, 2010 at 1:35pm
I am going to be up for reinvestigation soon and was needing some information. I had a vehicle repossesed about 8 months ago, and the day after it was repo I paid all the debt off and the fines associated. Since I have not been late. I also fell behind 2 months on my mortgage, but have been trying to pay back since. Will I have a problems getting a TS-SCI? I have only been late those times.
UNCSHOOTER4 (Fort Bragg NC) on August 2, 2010 at 9:47am
Mr Henderson,
Thanks for your answer! Actually, I filled out an SF85P on e-Qip. I was contacted by the DOS investigator and am meeting with him Monday. I have put together a list of all our debts and some evidence showing the that the bankruptcy stems from our failed business. We have never had bad credit or been behind on anything in our lives. Our record is clean until now. Do you think it will still be possible to get cleared to go overseas? I forgot to mention that this investigation if for my MRPT. Thanks
Terry (Marshfield) on July 30, 2010 at 7:38am
I bought a house in 2006 at the end of the housing bubble. I lived there until 2009 when I bought a 2nd much cheaper house and stopped paying and tried to short sell the 1st one. 15 months have passed and I have not been able to short sell the house and it will most likely go into foreclosure. All my other debts are current and I wont be hit with a deficiency judgment. Is there any possibility in keeping my security clearance?
RM (San Diego) on July 26, 2010 at 1:11pm
Logan (Hawaii):
I’d like to know what your bankruptcy lawyer is basing his/her opinion on.
Most federal agencies (including DOD) require a person with a security clearance to prompt report any potentially disqualifying condition listed in the Adjudicative Guidelines.
The Adjudicative Guidelines does not list a bankruptcy per se as a potentially disqualifying condition, but it does list “inability or unwillingness to satisfy debts.” People who file for bankruptcy do so because they are unable to satisfy their debts.
If you report your bankruptcy tomorrow, your clearance could be suspended and ultimately revoked, but whether or not this happens depends on all the circumstances surrounding your bankruptcy. Loss of income due to a spouse’s loss of a job is a mitigating condition. Failure to disclose relevant information as required by security regulations is also a potentially disqualifying condition, but this can also be mitigated when it occurs due to improper advice from legal counsel. No one can predict with 100% accuracy what will happen in your case.
William Henderson on July 23, 2010 at 4:18pm
Mel (Florida):
Yes, your clearance can be revoked because of foreclosure, but it depends on the circumstances surrounding the foreclosure, including any deficiency balance. Because you use the term “strategically default,” I assume you are able to make the mortgage payments, but would prefer to let the mortgage lender take the loss. In my opinion this is a lot worse than if you had to move to another city, you couldn’t sell the house, and the foreclosure was unavoidable.
William Henderson on July 23, 2010 at 3:46pm
Ronnie (Baltimore , MD):
An SF85 is used for an NACI investigation. NACIs are for federal employment suitability determinations for positions designated as non-sensitve and for anyone requiring an HSPD-12 Personal Identity Verification (PIV) card for access to federal facilities and computer systems. The SF85 is not used for national security clearances. I don’t think your situtation would result in the denial of a PIV card or federal employment, but I’m not sure because these types of determinations are usually made at local or regional HR offices using different standards than those used by Central Adjudication Facilities for security clearances.
William Henderson on July 23, 2010 at 3:33pm
I currently have a clearnance and had to file Ch.13 in 2008. Spouse lost job and was trying to make ends meet by taking equity from the house and "working" selling braclets then tried to do sell medical insurance. Eventually I saw that things were going to heck so I forced my spouse to agree to Ch. 13. It's 2010 and I still have not reported this, I want to but my spouse is afraid I will lose my job and "besides the lawyer said we didnt have to". My question is if I go in tomorrow and report this, what will happen to me?
Logan (Hawaii) on July 23, 2010 at 3:11am
I have a secret clearance. If I strategically default, can I lose my security clearance? The housing market is HORRIBLE in FL and I owe about $120K more than the house is worth. I don't care about bad credit for 7 yrs, because I am paying down other bills in preparation for strategic default. I just don't want to lose my clearance.
Mel (Florida) on July 22, 2010 at 7:44pm
William,
If a person owes the IRS a balance of 2,400, but enrolls in a payment plan will this prevent an indivdual passing a SF85 clearance if the account is not deliquent?
Ronnie (Baltimore , MD) on July 22, 2010 at 10:39am
Terry (Marshfield, MO):
There are no financial questions on an SF85. Not sure why you would have filled out an SF85. Whether or not you are granted a TS clearance depends on the circumstances surrrounding both issues. With a recent bankruptcy an interim clearance isn't likely.
William Henderson on July 20, 2010 at 5:13pm
EGEMINI (San Francisco):
Probably not, unless there is a deficiency balance that doesn't get paid.
William Henderson on July 20, 2010 at 5:03pm
My friend has been a Federal Agent for over 10 years and now going through a divorce. Will a short sale on there home hurt his top secret clearance? Never had financial problems and perfect credit.
Thanks!!
EGEMINI (San Francisco) on July 13, 2010 at 3:17pm
I was given a contingent job offer from the DHS to work as a Policy Advisor for the Office of Health Affairs. I must be able to obtain a TS clearance. The problem is that I have had steadily declining income over the past 3 years, all of which occurred after I made a large purchase. This has caused me to only recently fall behind on my debts, but I have set up payment plans with all of the creditors who show me as delinquent--roughly about 9,000 in debts. I have discussed settlements with the credit card companies, and it will cost me about $5,000 to pay these debts off. I plan to pay these off with my student loans in September, so the debt would be resolved before my EOD. I am really worried. I explained everything in the eQIP, but I fear that it's a lost cause. What do you think?
WorriedinFL (Tallahassee, FL) on July 13, 2010 at 1:45pm
I am a retired Federal Correctional Officer trying to obtain a TS for contract work in Afghanistan. We owned a business that failed and resulted in bankruptcy. Our personal credit was affected, though most was business related. Not 180 days behind on anything yet. Bankruptcy just filed within the last week. Also have a sustained excessive use of force and failure to report that was reduced to failure to report in-house by the Warden. Will either of these factors keep me from obtaining TS clearance? Never had bad credit in my life nor have I ever been reprimanded.
I probably should add that the excessive use of force was reduced in-house to a letter of reprimand regarding reporting issues. The Warden actually pulled the letter after 2 months and has written a very positive letter regarding my character. Anyway, I have filled out all the forms including the SF85, which does not ask for anything other than credit. Now I am wondering if when it comes time to fill out the SF86, will they somehow deny me a clearance? Thanks for your time.
Terry (Marshfield, MO) on July 12, 2010 at 10:11pm
SR (Miami, Fl):
None of the financial problems you described will result in the denial of a final clearance and you probably have a good chance of getting an interim clearance.
William Henderson on July 8, 2010 at 7:36pm
SR (Miami, FL),
When OPM conducts your credit report check, if the debts are listed as current, paid, or previously delinquent – now current, you should have no problem being granted TS eligibility. I always recommended to employees/applicants who were submitting an eQIP that they obtain a credit report on their own to make sure it had been updated. Often, collection agencies receive payment for debts they have obtained from other creditors and do not update the credit report with the current status of the debt. During your personal interview, the investigator should have a copy of the OPM requested credit report and will discuss any problem accounts with you. Good luck.
Bill L. (Annapolis, MD) on July 8, 2010 at 9:02am
I am currently up for a Top Secret clearance and I am worried about my previous financial situation. While I was in college, there were a few times that I would either forget to pay a certain bill or didn't have enough to pay it and it resulted in a few "30 days overdue" notifications on my credit report. There were also 1 "60 days" and another "90 days". Additionally, I had one cell phone bill sent to collections. ALL OF THESE HAVE BEEN PAID OFF COMPLETELY and I am in good standing with all of my debts. What are my chances?
SR (Miami, Fl) on July 2, 2010 at 12:19pm
jacob (DC):
Because you are now "paying as agreed," it shouldn't result in the denial of a PT position, but that's only my guess. The important questions is, "why were you 4 months behind in paying your mortgage?" There's a big difference between have a delinquent debt because of unexpected medical bills and because of gambling losses.
I can only guess about employment suitability decisions because there are no published case decisions and because there are big differences in the interpretation of employment suitability criteria from one agency's HR office to another agency's HR office.
William Henderson on June 29, 2010 at 6:46pm
l was a contractor with clearance and now just got offered a federal job which is a public trust position.l am 180 days late on my mortgage . l was 4 months late but when went to the banks for loan modification they asked me to start paying the trial period two months later which made me 6 months late .l told the interviewer about it and how l am paying now and hoping to get the modification to bring me current.will that lead to my denial ?
thanks
jacob (dc) on June 28, 2010 at 6:11pm
Bev,
The bottom line is that I think your chances for TS are good and for the SCI (I assume for an intel community (IC) agency) are fair to good. Even though the adjudicative guidelines are about 98% the same, the IC agencies look at some areas harder. Your spouse’s gambling is beyond your control (unless you are facilitating it) and you seem to be acting in good faith to resolve or manage your debts, both mitigating factors for clearance eligibility. Good luck.
Bill L. (Annapolis, MD) on June 4, 2010 at 8:58am
M.S.H. (Hawaii),
I suggest your husband obtain a credit report in his name. If any of these accounts are listed because he is a co-debtor, co-signer or authorized user, they could affect his clearance and need attention now. If they are not listed, it should not affect his clearance eligibility and you can resolve as you see fit. However, if you enter a debt consolidation agreement, and he is required to sign it by the agency, he (probably) legally assumes responsibility for part of the debt. Be careful when dealing with these agencies and make sure you use a reputable one. Good luck.
Bill L. (Annapolis, MD) on June 4, 2010 at 8:44am
ZA (Virginia):
Check with your security officer. When you self-reported your bankruptcy last summer, your security officer should have submitted an “incident report” on you and the incident report should have been posted to your security clearance database record. If your clearance database record no longer shows the incident report, it means that the matter was reviewed and favorably adjudicated. If this is the case and you have not had any subsequent financial problems and your clearance database record shows no “conditions,” “deviations,” or “waivers,” the whole matter should be behind you and your chance of getting a TS/SCI is good.
William Henderson on May 30, 2010 at 1:31pm
Applying for TS/SCI. I have a few issues since last SF86. Spouse's excessive gambling put us in debt. Settled a lot of charge off's. Making monthly payments on two charge-off debts. Defaulted on student loans, currently in the student loan rehabilitation program, will be out of default status in 2 months. Had some returned checks, all paid. Filed my 07 and 08 taxes late, in repayment program with IRS. Vehicle repossessed in 07, settled debt. I have a good budget that reflects I am living within my means and making regular payments on all debts. What are my chances?
Bev on May 27, 2010 at 6:11pm
I am seeking a position with a FEMA contractor that requires a Public Trust clearance. I'm concerned about several issues. I have a delinquent tax debt that I have not yet made any payment arrangements or an agreement on. Its approx. 10,000 and I am seeking an attorney to dispute it. In addition,
I co-signed on several business loans for approximately $50,000, that are now delinquent and in collections. One of these items has become a civil lawsuit. Must I reveal business debt for this clearance? The recession took a big bite out of a lot of us, and the job I seek will help me repay these obligations, but I'm concerned I wont be offered the job due to them. Any feedback is appreciated. Thank you.
FirstResponder (US) on May 27, 2010 at 1:18pm
I've been trying to search for information regarding debt negotiation and how it can affect security clearance.
My husband is a civilian employee for DOD, and the debt we have is under my name, not his. I have credit card debt, and it's not under my husband's name. I'm considering debt negotiation to deal with my debt, but I am unsure whether it will affect HIS security clearance? If the debt doesn't show on HIS Credit Report, can I take care of this debt on my own?
The debt is my responsibility, and I don't want it to cause my husband any trouble. It seems that debt negotiation will be the quickest way to deal with the debt, but if it could affect his security clearance, I will go the route of debt consolidation instead.
Does anyone have an answer for me? I would greatly appreciate it. Thanks!
M. S. H. (Hawaii) on May 20, 2010 at 4:33pm
I am currently a Gov. Contracts Specialist holding a Secret clearance. I was doing fine up until my husband passed away from Cancer in 2007. Since his passing I had been trying to hold on to no avail and finally had to file ch13 bk in July 09. I did notify my command Sec Off and let him know the circumstances that brought me to file. Prior to that, no delinquencies, etc.
Fast forward to now, I am in the running to become a Contracting Officer (GS13) which requires a TS/SCI clearance. I was wanting to know what my chances are of getting clearance approved at that level? Thank you in advance for any insight.
ZA (Virginia) on May 18, 2010 at 6:45pm
Hello Bill I have a question, please advise and thank you in advance.
I just accepted a tentative selection offer on Friday (May 14, 2010) with the DHS I.C.E. for a Management and Program analyst position GS-13. I was told that I may be required to undergo a background investigation before I start and I would receive an EOD giving me my effective date.
First just a little background, I am retired military and in 1988 had a TS for 10 years. In 2006, right before I retired, I applied for and was approved for a Secret clearance. I tried marijuana many years ago, maybe 14 or 15 years of age (so long ago not sure) no other drug. Impeccable military career, (White House Presidential guard – Law Enforcement – Infantry), no criminal charges or reports nothing! (two speeding tickets – over 15 years ago – nothing else).
March 2004 I was discharged from a chapter 7. The bankruptcy was because I owned a retail dollar store and was about to get out of the military, until 9/11, then stop loss prevented me from getting out and I received orders overseas. Long story short I lost my business and house and filed for and was approved for a chapter 7. Since then I had reestablished my credit, purchased three homes (only have one now) and was not late on any payments until Feb and March of 2010 (late on two house payments-they are not delinquent – paid late fee and caught back up). April and May’s payment were on time. I lost my job June 2009 (corporate cutbacks – spun into a termination) and have been seeking work, going to school and volunteering since then.
My excuse for not paying the two bills on time was that I was short on money and had to have money wired from another account which took longer than expected. However, again I do not foresee this to happen again.
My criminal and drug background is spotless (no exaggeration). Based off of the limited info that I provided, do you think that I have a chance to successful pass a background check for this position or am I getting my hopes up and should continue to job search? And what kind of background check will they complete on me? Thank you for your help.
Need Help (Michigan) on May 18, 2010 at 1:30pm
Cody Archer,
Yes, a debt to the IRS is a problem unless he has made a repayment agreement and is in compliance. If he borrows the money from you, that is between you and him, but someone may ask where he got the money and what influence you have over him for repayment. The questions will arise if the debt is not cleared on his credit report, so waiting until just prior to submitted the eQIP will probably not help as the credit report may not be updated fast enough.
P.S. Got any extra to loan me? :)
Bill L. (Annapolis, MD) on April 29, 2010 at 2:28pm
NB (New Mexico),
A paid tax debt should not be a problem for a Public Trust Position.
Bill L. (Annapolis, MD) on April 29, 2010 at 2:22pm
Jackie (FL) and Renee (NC),
I am sorry for your situation. I can tell you this – unpaid or delinquent debts are a security clearance issue. However, adjudicators do consider the causes for the debts. The most important mitigation in your spouses’ situation is “the conditions that resulted in the financial problem were largely beyond the person’s control…and the person acted responsibly under the circumstances”. Adjudicators see many, many cases similar to this and clearly recognize the underlying reasons. How you and your spouse handle the debt (bankruptcy, foreclosure, etc) is up to you. Just keep copies of all pertinent documents to provide to the investigator or adjudicator if requested. Good luck.
Bill L. (Annapolis, MD) on April 29, 2010 at 2:20pm
Sally (WV),
If your name was not on the bankruptcy petition, I do not think you need to report it. If your name was included in the petition, you should report it to your security manager. Your security manager was at fault for not briefing you on this self-reporting requirement when you first received access to classified information. When adjudicators look at financial issues, especially bankruptcy, they look at the causes of the bankruptcy and whether the causes were out of your control. It sounds like your situation is common for the current economy. I do not think your clearance will be adversely affected by the bankruptcy or your failure to report it sooner. Good luck.
Bill L. (Annapolis, MD) on April 29, 2010 at 9:36am
RJ (Los Angles),
Technically, HR is correct in that you have not had a 24 month break in federal service since retirement. However, if your military clearance was based on a NACLC or less, The SF 86 will be used to conduct a new employment investigation (ANACI) which is the basic, minimum investigation required for civilian employees. Also, a caveat to the break in service is that no suitability information is developed since your retirement. When you honestly complete your SF 86/eQIP and acknowledge your debt, your employing agency can submit the SF 86 to OPM to conduct an appropriate investigation and resolve this issue. Good luck.
Bill L. (Annapolis, MD) on April 29, 2010 at 9:31am
I have just been selected for a position with the DOD. When I retired (USN) in '08 from the same place I had an active SC that was conducted in '07. I am at the 21 month mark of it being inactive. I have to do a SF86 due to procedure.
In '08 I was upside down by over 200K and the ARM had reset which forced me to walk away because the GMAC refused a loan mod and short sale. I pulled the CR the foreclosure is there and there is 1 CC charge off that does not belong to me. What are my chances of getting hired.
I have been told by HR that since the SC is inactive and under 24 months that no check will be required and that it will be just reactivated. Any assistance or advice?
RJ (Los Angeles) on April 15, 2010 at 7:24pm
I have a Secret clearance with the DHS. I have had my job for a little over 1 year. I just recently took for the first time a class regarding security clearances and found out that I am required to contact the security clearance people to report any financial changes. (I was never told this before). I had to file bankruptcy in the last year because my husband was in business as a small home-builder and due to the huge downturn in the housing market he ended up having to sell his last home in a short sale and he had business debt that he couldn't pay. Some of his business loans had used our personal home as collateral and we were faced with losing our home.
Anyway this took place shortly after my hire and I have not reported it because I didn't know I was supposed to. Should I report it now? Will I lose my job for not having reported it? Will I lose my job anyway for having filed bankruptcy? We had no choice.
Sally (WV) on April 12, 2010 at 6:32pm
I am in the same boat as Renee in NC. A beautiful pool home in FL substantially underwater which is 4 years old and unsellable, a husband totally disabled and on SS Disability, and me looking at a transfer out of state which is necessary to have an income. I was laid off in VA several years ago from a leading defense contractor. Went to a major retailer to have a paycheck and was sent to FL, then laid off and out of work for 12 months until I managed to find a temp job. The only way I can see to continue to pay off medical bills and try to keep our heads above water is to go back to a govt contractor position out of state which requires a security clearance. I had one for over 20 years and never had a concern until now.
Is there any light at the end of that tunnel for average Americans who do the right things and are just trying to make an honest living?
Jackie (Florida) on April 11, 2010 at 2:43pm
If I'm applying for an NF III that requires Public Trust Position Questionairre (Form 85P), how problematic is a $600 State Tax lien from last year that has been paid and released?
NB (New Mexico) on April 8, 2010 at 7:28pm
After 22 years of active duty service my husband retired from the military. For two years now we have been at a loss of what to do with property owned in Florida. Unable to obtain employment in FL that would pay the mortgage he secured a job with the DOD but in another state. The house is currently underwater with more then twice its current assessed value being owed and an adjustable arm that takes effect in 2013. He MUST retain his TS clearance in order to keep his job and must maintain his credit to keep his clearance. We are out a HUGE amount of money each month trying to pay rent where we live now and pay a mortgage on a house that is worthless despite the fact that it is only a few years old.
We have tried renters and use a property management company to rent the house but rent is not as much as the mortgage and twice have had really bad luck with tenants that do not pay rent or just up and move off and damage the house. Despite the house being in a newer subdivision with a HOA that has high standards, there are LOTS of houses in the subdivision is foreclosed on and all the properties are underwater. The house can not be sold with a short sell since he is NOT behind on the mortgage and that in itself would possible risk his Clarence. Refinancing is not an option since there is clearly no equity in the house since its value has dropped DRAMATICALLY and now assesses for less then half of what it was purchased for.
SO WHAT DO YOU DO when you are drowning in a house that is underwater but you see no way to get out from under this debt without walking away from it all letting it go to foreclosure, or filing bankruptcy, and end up loosing your clearance and everything you have worked your entire life for??????
Renee (NC) on April 1, 2010 at 5:56pm
Great article--Thanks. I have a friend who was just offered a job requiring a secret. He has an issue we are concerned about--First, he has been out of work this past year (like many) and owes the IRS about $10,000 in back taxes. I am wondering if this will be a big problem and if so, if I were to loan him the $10k and pay this off just prior to his submitting the SF-86, would it still be held against him?
Cody Archer (Afghanistan) on April 1, 2010 at 1:20pm
D. Nolan:
As I indicated in the article, debt to income ratio rarely becomes an issue unless there is delinquent debt or some other indicator of a person’s inability or unwillingness to pay debts.
I can’t say for certain whether the “short sale” of a property would result in the revocation of a security clearance or disqualification for a Public Trust position. Short sale of property is a relatively new phenomenon, and I haven’t seen any case decisions involving short sales. So either it is not serious enough to result in a DOHA hearing or no cases involving short sales have made their way through the system yet.
My best guess is that if a short sale occurred due to circumstances largely beyond the control of the clearance applicant and the applicant acted honestly and responsibly before, during and after the short sale, it probably would not result in a security clearance denial or revocation. I have seen numerous cases involving applicants who had negotiated settlements on credit card debts (where the creditor accepted less than the amount owed as full payment for the debt) where the applicants received security clearances. I have also seen cases where there were negotiated credit card debt settlements and clearances were denied, but there were other financial problems involved in those cases.
William Henderson on March 30, 2010 at 10:14pm
CK (San Francisco, CA):
The purpose of the security clearance process is to attempt to predict future conduct based primarily on past and current conduct. If you can show that you corrected your past mistakes, that the mistakes occurred under circumstances that are unlikely to recur, and your judgment and responsibility have improved, you have a good chance of getting a clearance. Your single speeding ticket is not adjudicatively significant.
William Henderson on March 30, 2010 at 9:45pm
Nate (char n.c.):
Paying off the debts will help, but there is no guarantee that you will get a clearance. If the debt was caused solely by unforseeable medical expenses, then you have a better chance of getting a clearance. An adjudicator will evaluate the reason for your formerly delinquent debts to determine the likelihood of future financial problems. If your past circumstances suggest that the problem is unlikely to recur, it is possible that you could be granted a clearance soon after you pay off the debts.
William Henderson on March 30, 2010 at 9:36pm
I had an offer to work with a gov contractor, my credit was bad due to lots of medical bills which were my wife's security office did not submit e-qip due to the bills. My parents are willing to help me take care of the bills. Will paying them off now get me the secret clearance, or should I wait six months then reapply showing the debts were paid off prior to applying you the job?
nate (char n.c.) on March 29, 2010 at 7:57pm
Hi,
When I was in college I ran into some problem in terms of debt where I was too embarrassed to ask my parents for money but tried to live off of credit but eventually defaulted on 3 CCs. This was about 2 years ago but all the CCs except 1 was settled in collections but all 3 were paid in full thankfully through the help of my family. However now I am applying for a job that requires a security clearance, I have clean credit, I have no criminal history and I have 1 speeding ticket also over 2.5 years ago.
My current credit score is right about 660 and I have really cleaned up all my spending habits and I have a low debt:credit ration. What are my chances of clearing this hurdle?
CK (San Francisco, CA) on March 23, 2010 at 11:39pm
Mr. Henderson,
I have two questions regarding your very informative article:
First:
I have zero delinquent debts or black marks on my credit and a credit score in the high 700's. I do, however, have a single credit card with a balance of roughly $15,000 and two business cards in my name totaling approximately $24,000.
In your opinion, does this rate as a high "total debt" in context of security clearance/employment suitability? Will the "high" debt (24k of debt for a business in this climate is relatively low) affect security clearance or employment suitability as a candidate for a job with DHS or will the fact that I have zero delinquent debt negate this?
Second:
I have made every mortgage payment on my home on time and without fail for the past three years owning it. I fear, however, that short selling our home may be the only resolve we have if it continues to drop in value over the next year or two. I would make my mortgage payments on time as I always have until the house was sold, but would a "paid as settled" (short sale) on my credit report affect security clearance or employment suitability in obtaining a clearance job with DHS? If I got the job and short sold my home, could I potentially be terminated for this alone?
Thank you for any info you may have.
D. Nolan
D. Nolan (Orange County, California) on March 13, 2010 at 2:02am
Debt to income ratio? That doesn't seem to preclude you from getting massive government bailouts. What you need to do is quite simple; over-leverage yourself (cute way of saying, "put yourself in debt") to the tune of about $100 billion dollars - risk it all in high risk derivative gambles, and see how it all pans out. If you win, your are super rich and your debt-to-income ratio is zero; if you lose, the government comes to the rescue. Either way, you win.
Dubious Maximus (Kandahar, AF) on March 4, 2010 at 12:33pm
I have two investment properties whose mortgages are upside down. Foreclosure proceedings have already started on both of them. Would this affect me from meeting DHS suitability.
Thanks
RA
RA (VA) on March 1, 2010 at 3:09pm
I have a near perfect credit score, never any deliquencies, and have to relocate across the country. My TS eligibility was just granted. I was thinking about a strategic foreclosure since my house is upside by 45% (not a typo).
The recent debate in the media is all about morality and what-not, but how does a strategic financial decision to take a hit on my credit score, certainly no bankruptcy here, to walk away strategically impact my ability and willingness to handle classified material appropriately?
I guess what I am asking is this: will the adjudicators ever see such actions as a strategic financial decision rather than an inability to pay debt thus being prone to bribes or blackmail etc? Would they now if this was reported immediately and described as such?
Strategic Foreclosures (Gilbert Arizona) on February 19, 2010 at 11:58am
I need SC for a job with in my Company. I have horrible credit due to breaking my back a year ago. High medical bills plus the cost of living caught up with us and hurt us. Is It still possible to get the SC. Thank you
JROD (FLORIDA) on February 16, 2010 at 4:06pm
I have about $12k in cc debt that's gone to collections. Would a ch. 7 BK discharge of that debt help me get a secret security clearance?
The company would like to hire me except for the financial problems. I accumulated the bad debt over the last four years due to unemployment and a medical emergency. Would a ch. 13 BK be better?
I need the good job to pay off the debt, but I need the debt paid off to get the good job!
jpr (California) on February 11, 2010 at 3:31pm
I have a Secret clearance with the DHS. I have had my job for a little over 1 year. I just recently took for the first time a class regarding security clearances and found out that I am required to contact the security clearance people to report any financial changes. (I was never told this before). I had to file bankruptcy in the last year because my husband was in business as a small homebuilder and due to the huge downturn in the housing market he ended up having to sell his last home in a short sale and he had business debt that he couldn't pay. Some of his business loans had used our personal home as collateral and we were faced with losing our home. Anyway this took place shortly after my hire and I have not reported it because I didn't know I was supposed to. Should I report it now? Will I lose my job for not having reported it? Will I lose my job anyway for having filed bankruptcy? We had no choice.
Sally (WV) on February 9, 2010 at 8:35am
Ricky A (VA):
When your previous job terminated so did your clearance. Because your Periodic Reinvestigation (PR) had not yet been fully adjudicated, your clearance status changed from “active” to “loss of jurisdication.” Normally it would have changed from “active” to “debriefed/terminated.” Information in your JPAS database record will show your prior investigations and clearance. A prospective employer can take “ownership” of your JPAS record and request that DISCO/DOHA complete its adjudication of your PR, but first they must either hire you or give you a “Conditional Offer of Employment” (an employment offer contigent on you receiving a clearance). Completely clean cases and cases with only minor derogatory information are adjudicated by DISCO. Cases with major derogatory information are referred from DISCO to DOHA for adjudication.
How do you know your case was at DOHA?
William Henderson (Pacific Grove, CA) on February 6, 2010 at 5:26pm
Hi,
In December of 2009 I was separated from my company after loosing a contract. Simultaneously, my TS clearance was in the final stages of it's five year periodic review and was at DOHA. Potential employers now are telling me I don't have a TS when they check the system. My ex FSO is saying that I lost jurisdiction after I separated from the company. Can you please suggest how I approach this.
Thanks
RA
Ricky A (VA) on February 3, 2010 at 7:40pm
Hi I been given a contingent offer to a position with a gov contracting company that requires a secret clearance. I'm a little concerned because of my finances that I may not be able to obtain a clearance.
Please help!
1. I have currently have $70,378 in student loan debt. Keep in mind I just graduated with my undergraduate degree in 2007 and masters in 2009. I was able to obtain some financial aid but very little so I mostly had to take out loans. Some of my loans I am currently paying while others are still deferred, everything has been paid on-time.
2. I have 11,782 still to owe on a car payment. I have been making every payment on time.
3. I also have $16,140 in credit card debt. My parents weren't able to help me with school and I was able to work a little, but not enough to still cover my textbooks, food, insurance, car payments, health insurance so I had to charge everything. The financial aide office told me they were unable to help with additional finances of room on board and those listed above. This is why the debt is so high. I have been making every payment on time.
4. There was once instance in 2006 that I was 180 days late on a credit card payment. The credit card was a charge off and eventually an agreement was reached with the collection agency and I paid the full amount due by 2007. The amount was under 2,000.
I have been working as an intern since I graduated college and throughout my masters. This doesn't allow me to have benefits so I've been paying out of my pocket for benefits, loans, car payments, insurance and doctor visits. I still have been making my credit card and loan payments but they are close to the maxing out point since my income doesn't allow for much more payment.
I am not going to risk national security, I just would like to be able to pay off my debts, I hate having them but right now I can only make minimum payments or a little over minimum payments.
I am concerned all of this will hurt my chances of obtaining a clearance.
In addition, I don't have any problems with the law, drugs, alcohol, or foreign issues. My only concern is the financial problem.
Does anyone think I will have any problems?
Kristin ((MD)) on January 14, 2010 at 11:09pm
I was recently denied suitability by DHS to work on a federal contract job due to failure to meet financial obligations.
If the derogatory information on my credit report is removed can I reapply to this agency for work? And are there any restrictions to me re-applying?
Thanks
Rick
Rick A (DC) on January 7, 2010 at 8:03am
Hi: I declared in my application that I'm delinquent more than 90 days on my mortgage as i'm going thru the loan modification process. Do u know what is their process of checking up on this to verify? Would they call the loan company and ask specific or deeper questions other than if in fact i'm going thru the process?
JR (VA) on January 1, 2010 at 10:35pm
Can a possible foreclosure hinder me getting a job with the Federal Probation Dept? Due to the recent economic downfall, I need to return to the workforce. Our family income is from commission sales and that has dropped approximately 60% in the last year. What are we to do if I cannot qualify for a good job with the government?
We are currently trying to negotiate a modification of our loan but it has been a long and tedious process. What can I do? I just received my decline letter (form letter stating others were more qualified) for the job - I had worked with many Probation personnel previously and was told that basically, my interview was just a formality - How can we fix our financial problems if our own government will not give us a chance?
Perfect P (san diego, CA) on December 16, 2009 at 5:28pm
gm (Oklahoma City, OK),
I am sorry you feel the way you do. The bottom line is that possession of a security clearance is a privilege, not a right. As with any privilege, you must first show you are reliable, dependable and of good character before you are granted one. Once granted, you must remain reliable and dependable or the privilege can be taken away. For a security clearance, that means ALL aspects of your life – financially responsible, avoid abuse of alcohol, avoid use of illegal substances, avoiding involvement with law enforcement as a perpetrator, etc. Credit problems are of particular interest as the case files of espionage are full of people who betrayed trust for financial gain. I am not saying that you are someone who would do this, but adjudicators look at a person’s life in total and try to make an objective decision based on a person’s past behavior. An individual’s past is the best predictor of how they will act in the future. Best of luck to you.
Bill L. (Annapolis, MD) on December 10, 2009 at 11:59am
Angel P. (Alexandria, VA),
I am very sorry for your situation. I know from personal experience (36 years military/civilian combined) that administrative judges (AJs) and clearance adjudicators DO look at business downturns/failures as a mitigating factor and it is stated as such in the adjudicative guidelines. There must be other factors/issues that led to your revocation. AJs are known for looking at business failures/downturns as mitigating as long as you made reasonable efforts to inform creditors of the situation and to resolve personal debts to the best of your abilities. The “threshold of $3500” in delinquent debt is not a hard and fast rule. It is only an indicator for investigators and adjudicators to look harder at credit issues. Even the $3500 has been raised in the past 5 years with some adjudication facilities using $7500 and some even higher.
Bill L. (Annapolis, MD) on December 10, 2009 at 11:48am
Anonymous,
The type of position or the required duties of your position would affect whether a poor credit rating is a hiring determinant. Obviously, if you are handling cash transactions or in a position to affect contract awards, a supervisor would consider the possibility of you being tempted to steal or to accept a bribe to make certain decisions. In most cases, a poor credit rating will not affect your chances to be hired or remain on the job. For your own benefit and for that of your family, you should immediately begin all responsible actions to start resolving your debt, including contacting the creditors to arrange repayment; disputing debts that are erroneous to remove them from your credit report; consider Consumer Credit Counseling Service to help you manage your situation; etc. That way, if a clearance is needed at a later time, you will be seen as attempting to mitigate your situation. Good luck.
Bill L. (Annapolis, MD) on December 10, 2009 at 11:38am
smj (Texas),
You have several things going on that are in your favor as they help mitigate your financial situation. Specifically, your attempts to contact and arrange satisfaction of your debts are commendable and the cause of some of your indebtedness was beyond your control (divorce). These factors will be looked at favorably by the clearance adjudicators. Although your situation may seem overwhelming, you need to remain proactive in addressing your debts. Another option you may consider is CCCS (Consumer Credit Counseling Services) or other credible financial counseling to ensure you are on the best path. Beware of fly-by-night services or those that charge up-front fees to look at your situation as they can put you further behind. Good luck.
Bill L. (Annapolis, MD) on December 10, 2009 at 10:45am
I lost my clearance due to debt incurred thru a failed business and the government hearing didn't take that into consideration. I am a veteran of more than 30 years with top level clearances, on top level secret positions, and have never had any type of negative reports in my file. But yet, the debt of 30K was too high for the government to trust me with and that might revocation of the clearance. So where was the consideration for all the years of service and sacrifice? Never was there a reason not to trust me because I had a debt incurred from this bad economy and on a process (owning a business) that was good for the economy ever considered by the hearing. It was just too much debt over the established threshold of $3500. In today's economy, that's just peanuts and should be readjusted to real dollars.
Angel P. (Alexandria, VA) on November 25, 2009 at 3:17pm
I just have one question I hope that someone will answer for me. I have recently been hired for a gs4 non clearance needed job. I have done 10 years with the military, have an honorable discharge and have no criminal record. The only thing that I have against me is a horrible credit score, I haven't worked in a year and due to this I have defaulted on some credit cards. I need to know if my horrible credit score will get me dismissed from the job. I should also mention that I was told to begin work before my investigation was done. Any info that anyone can give me would be extremely helpful, thanks in advance.
Anonymous on November 21, 2009 at 7:43pm
I am also going through the process of getting a security clerance and I am worried I will be denied due to bad credit. I went through a pretty bad divorce and it ruined by credit and left me with charge offs / repo / and a foreclosure. I decided to go back to school to finish my degree then get a job which would help me to pay off the debt. I got the job and now I am afraid I will lose it because of my past. I have made arrangments with these creditors now that I have the money and have been trying to pay them off but there are so many of them I cant pay them all at once so I dont know what else to do. I have supporting documentation from these creditors that I am paying or have paid some of them off but I am not sure if this is good enough. I am ex military and I served my country and now I see all these people saying they have been denied a clearance due to financial probmels and it makes me worry. Thanks!
smj (texas) on November 15, 2009 at 7:03am
I do not understand why a security clearance has anything to do with someones credit. I can understand if a person has a great job making very good money and has bad credit, because he is not using good judgment with living within his means. On the other hand, a person making barely minimum wage or a little over, could never have good credit, because he struggles to just make ends meet and usually does not. He may have gotten credit to buy a car or such and then has to rob Peter to pay Paul in order to keep it.
The whole thing is ludicrous, and the government is keeping the poor poor and the haves haves. I know someone who is a janitor at a government building, and has worked there for four years, and now a new contractor has the contract and he has to get a security clearance and has been denied until he submits a letter explaining himself on the denial. WRONG! The government sucks so bad with how they treat the little people. I am so ashamed of my government sometimes. I embrace socialism more and more.
The jobs that do not pay a living wage and the companies who offer them are at fault, not the poor person trying to find scraps to eat on the piddly money he is paid to do honest hard work. If a company cannot pay a true living wage, then why are they in business? The owner or others at the top do not go home at night wondering if their electricity was cut off during the day because they could not pay it until the end of the week, because of an emergency. The owners of these pathetic companies has enough money and then some. Shame on these people who care only for themselves. What happened to being our brothers keeper? Many people have difficulty of making a living through no fault of their own. Life sometimes is a game of chance and luck, and too many people say as long as I got mine, I do not care if you get yours. How sad. I hope when the end of time comes, those in that position will get what is coming to them, and the wealth they accumulated on earth will be all for not. Eternal damnation will not have been worth the justice they will endure in the end.
gm (Oklahoma City, Ok.) on November 10, 2009 at 12:07pm
I have an existing TS/SCI and I had a foreclosure in 2008, found out by receiving 1099 in the mail from the bank. Notifed my employer at the time but they never submitted it to DONCAF. New job and they said the new finacial matters must be sent to DONCAf for adjudication prior to being read on. The reason for the foreclosure was the tenant stopped paying rent and wrecked the house, I could not afford it anymore, couldn't to a died in lue or short sale, lost it. I have since negotiated payback terms for the equity loan and the primary mortgage and Equity loan are the only 2 items on my credit report. Do I have anything to worry about? and approx how long does it take to have the item adjudicated? Thanks!
cwg316 (San Diego) on November 2, 2009 at 3:46pm
My husband is military, and has a security clearance with his job and absolutely CANNOT lose it! In 06 b4 we were married i went to school and didn't finish, thought financial aid would pay for the classes i took and come to find out they didn't. I went to the school in may 09 to pay the the last school fee of $100 never paid before leaving so i could get my transcripts to go back to school and gave me this # to call. come to find out F.A never covered it and i owe 10k, told them i wanted paperwork and would file BKR, they said i couldn't bc its considered a student loan even thou i never had a loan, nvr got any paperwork, then yesterday they call saying they nvr got the BK paperwork(was told i couldnt file BK on this) & Fri they will decided weather or not to take legal action and file suit against me, unless i pay 20% down right now and $700mo for next 12mos to resolve the debt in a year! 1st of all nobody has 10k to give someone in a year. Can my husband lose his security clearance or garnish his pay/taxes if they file a judgment against me even though this debt was incurred before we got married and in my madian name? any help would be greatly appreciated!
concerned (NC) on October 21, 2009 at 7:44pm
I had excellent credit until, I started helping out my sister with her child, Fiancée lost his job and we became pregnant with twins. However, one of the babies died during my pregnancy and had to be surgical removed. Medical bills start piling up and I was using credit cards to pay them. I have been hired for a job and suppost to start soon, and have a secret clearance, that may or maybe expiring. I am looking to file bankruptcy. Will this prevent me from getting a clearance.
MYE (Maryland) on October 1, 2009 at 11:37am
I am preparing to do evaluation at a Government Facility here in Missouri for a Government Job. I am very concerned about my Credit I have several Debts that I could not pay and about 7,000 in Student loans and 8500.00 that the IRS overpaid me in tax returns I am on hardship status with the IRS until I can a job will this hurt me in obtaining a Security Clearance Please give me some kind of an answer
KL (Missouri) on September 8, 2009 at 10:23am
I lost my federal contract job in 2007 due to a salery realignment event. Though I have applied all over I have not been successful getting a job locally. I made all payments until January of this year - essentially I ran out of money. My car was repossessed in March and just early this month the bank sued me for the amount of the loan. I have about $22,000 in debt. I visited a lawyer and he suggested that I go Chapter 7. When it rains it pours as one of my applications has just been accepted for a GS job at my old series. My question is will I be able to keep my clearance, which expires this October considering that I may have to apply for Chapter 7 or should I just take the job and try to pay off the debt?
Hou (Florida) on August 28, 2009 at 1:17pm
I recently filed for Chapter 7 BR and it went through in Feb 2009. The BR was caused by excessive debt incurred during marriage and I was labeled as responsible for the debt during the divorce. With Child Support payment and 50 percent of my retirement pension being paid to my ex-wife, I had to file BR. Currently; I have an active TS and am planning to take a new job requiring DHS suitability. With the above circumstance, does anyone see any problem with obtaining this suitability?
Bill (Silver Spring MD) on August 27, 2009 at 3:50pm
I had stellar credit until the downturn and due to helping my mom out with her bills (regular and medical) and my company going bankrupt I had some credit cards get maxxed out and I am currently behind on a few of them. No chargeoffs but I am working with them to fix the problem and get back on track. I have a decent amount of money coming my way (from my 401k) so I can address the bills and get the past due amounts paid so I can be current again. Will I still be able to get a secret clearance? I am an honest person and try to pay all of my debts in an honest way. This economic downturn really has screwed up alot of people, including me. But I really want to get this job (is perfect for me, but I need a secret clearance)
TS (Virginia) on August 17, 2009 at 5:51pm
Going through a security clearance right now and am concerned about my credit. Mainly late payments and a couple of accounts closed by the credit granter after payment in full. Will this disqualify me?
If I answered no to all the questions does that mean I am good to go or do they research further than the questions?
corona91719 (Ca) on August 15, 2009 at 2:20am
Hi I been given a contigent offer to a position with a gov contracting company that requires a secret clearance. I'm a little concerned because of my fiances that I may not be able to obtain a clearance.
Please help!
1. I have currently have $70,378 in student loan debt. Keep in mind I just graduated with my undergraduate degree in 2007 and masters in 2009. I was able to obtain some finacial aid but very little so I mostly had to take out loans. Some of my loans I am currently paying while others are still deferred, everything has been paid ontime.
2. I have 11,782 still to owe on a car payment. I have been making every payment on time.
3. I also have $16,140 in credit card debt. My parents weren't able to help me with school and I was able to work a little, but not enough to still cover my textbooks, food, insurance, car payments, health insurance so I had to charge everything. The financial aide office told me they were unable to help with additional finances of room on board and those listed above. This is why the debt is so high.
I have been making every payment on time.
4. There was once instance in 2006 that I was 180 days late on a credit card payment. The credit card was a charge off and eventually an aggreement was reached with the collection agency and I paid the full amount due by 2007. The amount was under 2,000.
I have been working as an intern since I graduated college and throughout my masters. This doesn't allow me to have benefits so I've been paying out of my pocket for benefits, loans, car payments, insurance and doctor visits. I still have been making my credit card and loan payments but they are close to the maxing out point since my income doesn't allow for much more payment.
I am not going to risk national security, I just would like to be able to pay off my debts, I hate having them but right now I can only make minimum payments or a little over minimum payments.
I am concerned all of this will hurt my chances of obtaining a clearance.
In addition, I don't have any problems with the law, drugs, alcohol, or foreign issues. My only concern is the financial problem.
Does anyone think I will have any problems?
Kristin on August 14, 2009 at 5:14pm
I'm not a bad person. I just got offered a federal position and I accepted. I need to obtain a secret clearance. I have a problem about my debts. I did not pay my debts for a long time. However I am trying to get my debts resolve through credit counseling. Will credit counseling help me with obtaining a secret clearance?
nece on August 4, 2009 at 5:59am
just got offered emplyment with contractor who works on usps contract. i have been out of work for 6 months. a tax lein for 5700 was just placed on credit report. will this block the usps clearance. i need the job to pay the debt off. i have informed them of debt. all other credit is great
tj (nc) on July 28, 2009 at 1:32pm
I got divorced and took upon the majority of the things we owed. She recieved half of military retirement and portion of my employement. Causing me to go into considerable debt. I had a vehicle repossed, house forelclosed, and several other major financial issues. I file Chapter 13 and recently had it dismissed, because I have been able to get back on my feet. I recently received a govt job offer but need security clearance. What are my chances of receinving one.
Reggie (Warner Robins GA) on July 14, 2009 at 10:28pm
11B (Oregon),
There is hope, but you need to act now. The problem is you admit that you have not made payments in several years. The adjudicative guidelines state that "inability or unwillingness to satisfy debts" is a security concern. First, obtain a credit report from each of the 3 major credit bureaus to see exactly what shows on them. Sometimes, these debts are sold to other creditors and you need to know exactly who you owe money to. Contact the creditor and attempt to set up a payment plan and start paying. Some creditors will negotiate a payoff lower than is actually owed. By the time you are interviewed, you should have a record of making payments in accordance with the agreement and that helps mitigate the situation. Good luck.
Bill L. (Annapolis, MD) on July 14, 2009 at 1:03pm
Can anyone tell me if a misdemeanor arrest (which did not result in any conviction) within the past 7 years would prevent being granted a clearance, if, lets say, it was not disclosed?
Also, what if you were forced to stop making payments on a house because of a job loss, but all other debt obligations were paid on time for at least 7 years?
John (california) on July 10, 2009 at 12:43am
I was recently hired for a contractor job in the middle east. Even though I told the company I had outstanding debt. I will need to acquire "secret" level clearance. They have not ran my clearance yet. However, I am $40,000 in joint debt with my wife who I am separated with. The unpaid joint debt is is several years old with no payments on it for years. I acquired most of it after separating from the Army (completing my contract with an honorable discharge) and overseas deployment and my wife losing her job.
It would appear from your article I have absolutely no way acquiring a secret clearance? or is there hope?
11B (Oregon) on July 8, 2009 at 3:02am
Scott:
There are very few security/suitability issues that will absolutely prevent a person from getting a federal security clearance and yours is not one of them. Almost all past financial problems can be successfully mitigated if a person has acted reasonably and responsibly in meeting their financial obligations for the past few years. The whole purpose of the security clearance process is to try to predict future conduct based on past and current conduct. When a person has acted honestly and responsibly for a few years, it is much more indicative of their future conduct than something that happened further back in time. The challenge for most people is effectively conveying to an adjudicator (through their application form and sometime a security interview) what has changed in their life that shows they will not get into the same unfavorable situation in the future.
William Henderson (Pacific Grove, CA) on July 4, 2009 at 4:36pm
I have a question on this item with clearances. Over 10 years ago, I accidentally defaulted on paying my student loans and taxes. I was unaware since I was overseas and mail was delivered late. When I came back to the states, I made good faith effort to repay these debts which I did in full. Then I had bad car accident several years back and could not pay medical and credit card bills.
I declared chapter 7 bankruptcy 3.5 years ago. The BK was discharged successfully over 2 years ago. I rebuilt my credit rating with secured credit cards. I have no debt. For past 3 years, I have paid all of my bills on time. I file and pay all taxes for past 3 years and use a good CPA to ensure tax compliance.
Can I still obtain a secret clearance?
scott (california) on June 23, 2009 at 1:45pm
I have a lot of debit because i misused my credit cards but I have never been late on the monthly payments and I make payments to creditor every month. So if someone got his security clearance denied can he fix it or that's the end of his carrier. Thank you.
AJ (Texas) on May 1, 2009 at 12:46am
my credit was almost perfect in june 2008 august i waslaid off work. and the economy in florida craped out now i have 2 credit cards im in default on. ihad to borrow almost all my 401k ,so i dont loose my house. now i have the opertunity to work in kuwait,or iraq.will these debts keep me from getting a security clearance? i already had to get a tsa security for my hazmat licenses,i passed that .what do i have to do now?? thanks jon
JON G. (FLORIDA) on December 31, 2008 at 6:36pm
I am in the middle of getting my security clearance restored so I can work at a Government contractors position. How long should it take for that clearance check to be done, if they can tell I had a TS clearance before?
RT (New Port Richey, Fl) on November 13, 2008 at 1:18pm
I know this is unfair to the hard working people...like right now there is very few Americans with good credit...and do to the market and the economy alot of people are losing their homes cause of poor management of the goverment of this crazy bankers and lenders but now what ever we all loose...and yes there is more criminals with good credit out there who just do crazy things to keep their finances in order while the hard working american just struggles and fights to stay up....while the criminals get richer and the white collar people do what ever to take our money...thats why we are the way we are...money solves everything..but hard work dont..
Rick (florida) on November 12, 2008 at 2:15pm
Everyone goes through bad economic times, while I was deployed I was making decent money, I had almost 0 expenses since the Army paid for everything I needed, I enter the civilian world and its half the pay and double the expenses, so now I cant get that good job. They should put people qualified for a job on probation status for 2 years and make you pay atleast 80% of your bad debt, atleast give you a chance. Just because you have a mountain of bills you cant pay does not make you a bad person. I served my country and served in 2 combat zones but it doesnt mean anything because my credit is bad, total nonsense..
ME (Miami) on September 13, 2008 at 1:19am
sad to say, all to often it the big guys that ruin it for the ones trying to keep credit. with the current and past situation in the world, 911 as well as cut backs, loss of work has done the economy bad and with the lose of jobs and paychecks at a standstill trying to live is bad enough. what are the stats on number with good credit or decent credit? more criminals with good credit are in the work
Anonymous on July 28, 2008 at 3:25pm
I have medical debit for lack of insurance. My current job does not pay enough for me to get out of debit. I need a better salaried job, how can I get one if my credit score is bad?
DeBorah K Beckett (Oklahoma) on June 11, 2008 at 9:07am
With that being true its going to really put the people who have bad credit due to thier parents using their SSN in bad spot. I have a Secert SC and been working on my credit for the longest and its still not getting better. So if I lose my job that requires my SC it would take forever to pay back the debt I have then if I had the job
JD (Charleston South Carolina) on January 29, 2008 at 1:18pm
