If I File Bankruptcy Will I Loose My Security Clearance??
Filing bankruptcy will not, in and of itself, cause a person to lose his/her security clearance.
Generally, it's not the bankruptcy that creates a problem for Authorities as much as the events leading up to your bankruptcy. If the filing was caused because of blatant irresponsibility - this could be viewed as a negative factor. On the other hand, if the facts demonstrate that events leading up to the filing were beyond an individual's control such as large medical bills- this situation should not be viewed as a negative factor.
El Paso is home to a large number of Military, Border Patrol, DEA and ICE. I have addressed security clearance issues with our soldiers, Border Patrol, DEA and ICE personnel. For the most part bankuptcy does not cause a problem. Addressing your financial situation in a responsible manner, including filing for Chapter 7, 11 or 13 should not result in the loss of one's security clearance.
The opposite is also true, not addressing an out of control financial mess can lead to the loss of a one's security clearance. Why?? The answer is simple. A person drowning in debt has a higher probability of accepting a bribe.
Everyone in their lifetime will make poor choices. Don't confuse poor choices with fraudulent behavior and irresponsibility. Poor choices are forgiven.