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Marine OCS & Credit Score/Bankruptcy

Hey all,

I have been a long time lurker here and on the MarineOCS forums, first post noob.

Doing a few searches I have received some insight on security clearances and going through OCS. My main goal is to get to flight school and give it my all. If I make it I make it. Concern is my credit score/age.

Went through a bad time a year ago separating with a fiancé and my credit was crushed. I was still fortunate enough to cover rent and my student loans. My CC's and auto loan went into default and are now with collections as I had enough to just cover a few expenses and live day to day. My question to everyone is what their experience is with getting a security clearance after filing bankruptcy. My OSO has not given me enough info to figure it out as his main concern was the age waiver (27 in October).

I have heard that setting up payment plans with collectors can assist in getting a clearance, but have also read that a bankruptcy filing can show you are attempting to get everything under control. I don't want to file if I know this disqualifies me, I just want to make a smart decision with my finances.

Very excited to start this journey and been working hard to score a perfect PFT/ASTB when the time comes. Would love any experience in this arena...

Thanks for reading!
 

Swanee

Cereal Killer
pilot
None
Contributor
Well... Bankruptcy is not going to help your matter at all, neither is having any type of debt going to collections. Each security clearance is handled on a case by case basis and if you are denied a clearance you do have the opportunity to appear before a judge to argue your case. My sister in law is a lawyer for DOHA (Defense Office of Hearings and Appeals), shes the one who argues for the Gov as to why a person should not have a clearance. There are 3 major factors that she argues, 1. drug use and connection with known drug users, 2. foreign contacts from certain countries, and 3. bad finances, bankruptcy, debt and other money matters. The bottom line is that if you have a glaring issue that someone could use to leverage you into betraying your country you'll probably be denied.
 

Flash

SEVAL/ECMO
None
Super Moderator
Contributor
...I have heard that setting up payment plans with collectors can assist in getting a clearance, but have also read that a bankruptcy filing can show you are attempting to get everything under control...

If you are at this point have you may want to think about professional help, like getting a lawyer or some sort of non-profit credit counseling service. While a lawyer may cost some in the short term it may pay off considerably in the longer term. If that is not an option there are non-profit financial counseling services out there that may be able to help you out, make sure it is a reputable service though since there are countless ones that will fleece you. The feds and many states do provide information and in some states a little assistance with trying to find help.

Federal Trade Commision info on debt colleciton: http://www.consumer.ftc.gov/articles/0149-debt-collection

California DOJ info on debt collection and info for assistance: http://oag.ca.gov/consumers/general/collection_agencies10
 
Great info, appreciate the time. It seems that the bankruptcy can be discussed if denied the security clearance.

Right now it may be the best option if I can show that I had great credit for a good amount of time and this was a bad 6 month span.As mentioned I did keep some debt current.
Thanks for your input Swanee and Flash!
 

exNavyOffRec

Well-Known Member
Some input for the civilian side of what these collection places can do, they eventually will give up and the debt will show up as a "charge off" basically that means they have written off the debt, or they could go for a judgement against you but in all the credit reports I review I generally don't see someone get sued if the debt is under 30K or about that. If it is an amount greater than 30K or so then do what you can to pay off the debt.
 
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