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A: In a word, no. I have spoken to, and represented, many New Jersey residents who are members of the military, TSA and other government agencies, and my answer has always been the same. In fact, federal law (under the Bankruptcy Code) prohibits this from happening. Section 525(a) states that,
“a governmental unit may not deny, revoke, suspend, or refuse to renew a license, permit, charter, franchise, or other similar grant . . . or discriminate with respect to employment against, a person that is or has been a debtor [in bankruptcy] . . . solely because such . . . debtor [filed bankruptcy] . . . or was discharged under the Bankruptcy Act.”
Thus any branch of the military, government agency, or other “governmental unit” cannot revoke said clearance. If anything, filing bankruptcy will help, because you are less vulnerable. People in debt are often desperate for money and as such can be more susceptible to bribes or blackmail that could compromise security. Bankruptcy takes that away.
This question raises one of many myths and fears that people have about bankruptcy that can prevent them from getting a fresh start. If you have been considering bankruptcy, but were worried about what it would do to clearance or rank, feel free to call me at 888-857-8418 or contact me through this web site for a free consultation. A fresh start could be the best thing for you.
Have more questions about bankruptcy? Get the answers to the most frequently asked questions by downloading my free book, Top Questions People Ask About Filing Bankruptcy in New Jersey. It will give you the answers you need all in one place. Then call me at 888-857-8418 or contact me through this site for an appointment for a free consultation to discuss your case.