How does Bankruptcy Affect a Security Clearance?

January 21, 2010


Many people living in the greater Washington, D.C. area are required by their employers to maintain security clearances. But what happens to a person’s security clearance if he or she files for bankruptcy?

The bankruptcy code generally prohibits an employer from discriminating against an employee if he or she files for bankruptcy. But, a change in security clearance may or may not qualify as “employment discrimination,” depending on the circumstances.

Although the evidence is anecdotal, a bankruptcy filing alone does not appear to cause an automatic revocation of most security clearances.

Some security officers report that a bankruptcy filing is seen as a positive step if a person has a large amount of debt they were previously ignoring.

In other words, it’s the debt that renders a person with a security clearance vulnerable to being compromised. Bankruptcy helps get rid of the problematic debt.

In fact, I have spoken to people who were counseled by their security officers to file bankruptcy because their debts were too large and seemed to pose a security risk.

However, your security officer will also consider other factors such as how you got into debt and what you did to try to resolve the debt prior to filing bankruptcy.  You may want to visit this site for more information about how certain security clearance reviews are conducted.

The only way to be sure how a bankruptcy will affect your particular security clearance is to discuss it with your security officer and chain of command, if applicable.

Mann Bracken’s Cases Dismissed, But Consumers Should Remain Vigilant

January 16, 2010


Debt collection law firm Mann Bracken’s pending lawsuits are being dismissed without prejudice in Maryland courts.

The article at this link discusses statute of limitations, settlement, and garnishment issues for pending cases and cases that have already reached judgment.

If your case is supposed to be dismissed, be sure to follow up and ensure that it is actually dismissed. There is going to be a lot of confusion in the court system as a result of the mass dismissals. Stay on top of your case and verify that it has in fact been dismissed.

Mann Bracken LLC Ordered to Cease Collection Activities in Maryland

January 14, 2010


The Maryland Commissioner of Financial Regulation has suspended Mann Bracken’s collection agency license in the state of Maryland and ordered it to immediately cease all collection activities, including pending litigation.

Defendants in cases for which Mann Bracken is Plaintiff’s counsel should consider how this affects their cases, garnishments, or settlements.

Please see text of order at this link:  mann-bracken-cease-and-desist-1-11-10

Bankruptcy Services

Our office works to make the process of filing Chapter 7 or Chapter 13 bankruptcy as quick and stress-free as possible for our clients.

The process begins with a free bankruptcy phone consultation.

Please call (202) 470-2727 for your free bankruptcy phone consultation. Or, click here for our contact form.

For more information about Chapter 7 or Chapter 13 bankruptcy in Maryland, please visit our Bankruptcy Resource Center.

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