Bankruptcy and Security Clearances

A Brief Overview on Standard Form 86

The Questionnaire for National Security Positions form, or Standard Form 86, is a national government form that will need to be completed by those interested in consideration for the following positions: Government contractors, Military personnel, Other government employees

The 127-page form will provide essential information for the inquiring government agency interested in conducting a thorough investigation and evaluation on the applicant. Some of the information requested in the form includes, but is not limited to:

• List of schools and colleges the applicant has attended
• Ten-year employment record of the applicant
• Any relations to foreign governments and/or nationals
• A record of all overseas travel
• A complete list of all prior residencies

Under the form’s Penalties for Inaccurate or False Statements section, it is stated that the failure to disclose any information or the act of intentionally falsifying information is considered a federal crime that could be punishable with a fine of up to $10,000 and/or a prison sentence of five years. Additionally, federal agencies will bar the applicant from the position by firing the individual, declining his or her security clearance, or simply disqualifying him or her from the job position.

It should be noted that any action taken against an applicant for falsifying or failing to disclose information would remain in the applicant’s permanent record. Generally, this will affect the applicant’s future petitions for a similar placement. Since the application is very sensitive, an applicant’s trustworthiness is extremely critical for consideration.

Proficient Security Clearance Attorneys

If you are applying for a job that requires national security clearance, you will need to fill out the Questionnaire for National Security Positions (SF-86). This form will ask you questions with respect to your finances and your financial record. In particular, Section 26 focuses on your finances and will inquire about your financial history, including any financial delinquencies you may have had in the past. You must read this section carefully because certain questions are limited to the last seven years whereas other questions do not have a limiting time period.

In order to be prepared to answer the questions on the application, you should obtain credit reports from every nationwide consumer credit reporting agency, which includes: Transunion, Experian and Equifax.

It is not uncommon for applicants to assume that they meet all the requirements and that there are no issues on their credit reports. It is important, however, that you know what is in all of your reports before you finish this section of the Questionnaire for National Security Positions. Under federal law, you are permitted to obtain a copy of your credit report from the three major credit-reporting agencies every 12 months.

If you have any questions about how to fill out your application please call our law firm for help. We offer a flat fee services that are not limited by hours where we help advise you on how to fill out your application. In short, we are here to answer your questions.

Why Finances Matter for Security Clearance

For many government agencies, inquiring about an applicant’s financial history is for purposes of understanding about the applicant’s degree of personal responsibility. Agencies will want to know more about an applicant’s self-control, judgment or lack thereof, and any potential unwillingness to follow rules and/or regulations. According to the Applicable Adjudicative Guidelines, an applicant’s financial records can provide more information about his or her trustworthiness, reliability, and/or ability to protect confidential information.

Furthermore, one of the motivating factors for individuals to commit espionage against their government is financial gain.  The United States has a long history of individuals who shared classified information with foreign governments in exchange for money.  For these reasons, the government will continuously monitor the financial accounts of anyone who possesses a security clearance.

The Adjudicative Guidelines state that a person who is in debt could resort to dishonest or unlawful means to obtain money. Habitual gambling, for instance, can lead a person to commit financial crimes that could include espionage. Furthermore, a person who has a lot of money can also raise suspicion in the event that the source of income cannot be fully substantiated through legitimate means.

When filling out the Questionnaire for National Security Positions form, your history of financial responsibility will be meticulously inspected. If you have any financial issue in your record, this could negatively affect your application. Please do not hesitate to call National Security Law Firm if you would like discuss any concerns you may have about your financial records.

Listing a Bankruptcy on Your Application Form

On the SF 86, you will find that section 26 will give you the opportunity to explain any and all bankruptcies in your financial history. It is important to seek legal advice about understanding the nuances between the different types of bankruptcies and how these can relate to your application for a national security position.

If you have previously filed for bankruptcy, you should know that filing for bankruptcy for a legitimate reason could indicate that you were taking proactive measures in resolving your financial issues. Regardless, speaking to a well-qualified attorney can help you through the application process.

Call Us for a Consultation and Learn How We Can Help You in Your Application Process

Every aspect of the financial sections of a national security clearance application is important but they can be very complex. It is important that you understand how to answer the questions and what information to include. If you previously have had issues with outstanding debts or have filed for bankruptcy, you should contact National Security Law Firm for assistance. Our firm is committed to serving applicants who are in the process of applying for a national security position and have financial issues.

Our law firm is equipped with experienced and knowledgeable national security clearance attorneys. We can guide you through the entire process and help you through the most complicated application sections. We are also here to help you in the event that your application for security clearance is denied because of your financial record. Oftentimes, a simple blunder in the application can be grounds for an application denial. Having a knowledgeable attorney review the necessary sections can help to ensure that your application is accepted the first time you submit it. Speak to an attorney at National Security Law Firm, LLC for more information on how you can obtain security clearance even if you have issues in your financial record.