Effect of BK on Government Jobs??

[InDebtInMD]

Sorry to resurrect this old thread, but it may pertain to my situation.

My wife and I are about 18-months post-BK and doing OK.

I may have an opportunity to apply for a government job and was wondering if the BK would kill that. From the looks of thing, I'd say probably no. Anyone know if anything has changed since this original thread?

[SinkingFast]

I separated your post from the old thread and made it a new thread.

Maybe you'll get better responses this way.

For future Reference, please don't boot old threads by tacking on a new post. It's against Forum Rules. Just start a new thread and ask your question.

BK can impact your ability to get some jobs. Jobs in the Financial industry. Jobs that require Security Clearance. Even in the military,........ Some jobs and duty stations would not be available to you due to BK.

Maybe if you're a little more specific about the type of job, you might get better answers.

[gak555]

I'm wondering the same thing. SF-when you refer to jobs in the financial world do you think that includes selling health or life insurance ?

[InDebtInMD]

it would be an engineering job. Thing is, I've been working in this office for over 10 yrs as a contractor, so they know me - don't know if that would be a mitigating factor though.

Is this the sort of thing that may become less significant the further in the past it goes?

[SinkingFast]

Here's a really good article with current info on this topic:

http://www.cnn.com/2006/US/Careers/0...dit/index.html

I read in another article that Credit Histories mainly are used to verify information and make sure the candidate told the truth in the application process. Degree. Previous employers,........... Who you worked for and when.

Unless your going to be in a position where you're responsible for money or secrets of some kind, prospective employers look mainly at a candidate's criminal history. Check kiting and such.

[BKer]

I am a fed also. I filed Ch 7 BK in June 2005 and I was discharged and closed on the same day in September 2005.

I joined the federal work force on October 30, 2005, so basically 1-month after bankruptcy.

In November 2005, my organization put me in for a Top Secret clearance. After 3 grueling interviews, handing out BK files like they were flyers, and wating 16-months, I got my Top Secret clearance. I tell you though, it was like going through the entire BK all over again.

Before I accepted the position, the feds asked me if I defaulted or was past due on any student loans or taxes. In both cases, the answers were no

Long story short, it is possible to get a security clearance after filing for bankruptcy.

[PatientSteph]

up at night

Well this topic keeps me up at night.

I'm going to need clearance for the job I want with the Gov't, but my husband lost his job a year ago and we were struggling to keep up. To make this story short, we need to file to get out of this situation, however I'm afraid I won't be able to work in my field because of the bk. I'm so afraid. My husband's joblessness will cost me my career. He has a job now... but the damage is done.

Sure I spent $, but not on vacations or cars or boats, I spent a lot of money getting accupuncture and trying different herbal remedies to help with my depression (mom died of cancer - and that almost broke me in more ways then one) and back pain. Will they see that on the bank statements? Will they ask about why I spent 500.00 at an herbal pharmacy?

What if I wait 5 years to try to work for the Gov't, will that be better?

I'm embarrassed enough about the situation, but to have someone grill me and my friends about it is going to kill me. I might as well just live in a tent and sell snowballs.

I just feel like such a looser because of this. I feel like my life is ruined, and now that my mom is gone I don't know how to go on.

Any advice is much appreciated.

[BobMango]

Well this topic keeps me up at night.

I'm going to need clearance for the job I want with the Gov't, but my husband lost his job a year ago and we were struggling to keep up. To make this story short, we need to file to get out of this situation, however I'm afraid I won't be able to work in my field because of the bk. I'm so afraid. My husband's joblessness will cost me my career. He has a job now... but the damage is done.

Sure I spent $, but not on vacations or cars or boats, I spent a lot of money getting accupuncture and trying different herbal remedies to help with my depression (mom died of cancer - and that almost broke me in more ways then one) and back pain. Will they see that on the bank statements? Will they ask about why I spent 500.00 at an herbal pharmacy?

What if I wait 5 years to try to work for the Gov't, will that be better?

I'm embarrassed enough about the situation, but to have someone grill me and my friends about it is going to kill me. I might as well just live in a tent and sell snowballs.

I just feel like such a looser because of this. I feel like my life is ruined, and now that my mom is gone I don't know how to go on.

Any advice is much appreciated.

I filed after joining the Federal workforce and aside from going line by line through my list of creditors with the investigator, it wasn't an issue.

The investigator asked a number of questions like, "could someone blackmail you over this?", "have you told friends and family?" I wasn't worried about any of it since I already had the job and the gov't cannot take action against you for filing bankruptcy.

I would say that they are more concerned about having financial problems that have not been addressed, leaving you subject to legal action or potentially blackmail.

In terms of the bankruptcy court looking at your banking habits, they may have some questions, but I wouldn't sweat anything you spent on your health, provided it wasn't hot stone massages and pedicures

They will be primarily looking for preferential payments to unsecured creditors or luxury purchases. In my case I had a $4K deposit from a school booster club that I used to pay a deposit on a dinner cruise for the school band about 6 months before I filed. They didn't even ask about it.

[hooferator]

I worried about the luxury purchase thing, too. My comp died recently and I had to get a new one. I got the cheapest laptop I could find, but with the warranty and tax it was still $500. I didn't put it on credit, but are they going to be all up in my face about the expenditure? It's the only thing I've bought for months besides the barest food and housekeeping type items.

[jb1997]

Well this topic keeps me up at night.

I'm going to need clearance for the job I want with the Gov't, but my husband lost his job a year ago and we were struggling to keep up. To make this story short, we need to file to get out of this situation, however I'm afraid I won't be able to work in my field because of the bk. I'm so afraid. My husband's joblessness will cost me my career. He has a job now... but the damage is done.

Sure I spent $, but not on vacations or cars or boats, I spent a lot of money getting accupuncture and trying different herbal remedies to help with my depression (mom died of cancer - and that almost broke me in more ways then one) and back pain. Will they see that on the bank statements? Will they ask about why I spent 500.00 at an herbal pharmacy?

What if I wait 5 years to try to work for the Gov't, will that be better?

I'm embarrassed enough about the situation, but to have someone grill me and my friends about it is going to kill me. I might as well just live in a tent and sell snowballs.

I just feel like such a looser because of this. I feel like my life is ruined, and now that my mom is gone I don't know how to go on.

Any advice is much appreciated.

If you have major issues with drugs, finances, etc., there is the web site that shows government contractor cases through the Defense Office of Hearing and Appeals (DOHA) where you go before an Administrative Judge. This kind of gives you an idea of the process, you basically have to prove you are not a security risk:

http://www.dod.mil/dodgc/doha/isp.html

[jeffinva]

BK usually isn't a problem for most people trying to obtain a clearance. As always there are exceptions such as:

Why did you have to file for BK? reasons such as debt due to heroin addiction, gambling addiction etc. will NOT help you out.

What level of clearance? Classified and Secret are much easier to obtain. Top Secret is still quite possible but may take more time. Above Top Secret (TS/SCI, and either CI-Polygraph or Full-Lifestyle Polygraph) I'd say the chances are not very good.

Timing? Filing BK and immediately submitting for a clearance isn't as favorable as filing for BK with a longer time gap before submitting for a clearance. Not everyone has that luxury though.

Friend of mine works as an investigator and also gave me two other tidbits.
Do NOT B.S. the investigator if the topic of BK comes up. Be honest about it and things generally go by much easier.

In many cases (especially these days) BK is basically not a big deal as long as the person acted responsibly and actually looks much better and more favorable than does a person submitting for a clearance with a ton of outstanding credit card and loan debt that is always behind on payments......who looks like they would be easier to bribe?

[PatientSteph]

I'm just following up on this thread, but I see my reply didn't make it. I wanted to say thank you so much for the info. It is very much appreciated because it is very hard to find out what I'm going to have to face in the future. I'm the kind of person who likes to plan and needs to know off all possible outcomes and how I'm going to deal with those outcomes. So being in this position of not knowing is really really uncomfortable to say the least.. like I said... it keeps me up at night.

I'm filing because my huband lost his job and it's taken him over a year to find a job and it's for considerably less money. Then my mom was sick and staying with me and those expenses completely wiped out my savings. She utlimately went into hospice and passed away. We have no way out of this mess and IT KILLS me that I have to file. I had great credit, paid everything, budgeted out for a year and all was good until the economy tanked and my mom got sick.

The level of security would be Secret. I have the opportunity to get my dream job now (meaining now) and I so fear it will not come to fruition because of the bk. I'm so so upset over that.

There is an open position that I would be perfect for and I gave my resume to someone, and now I'm thinking I should have told them that I was not ready too make a move yet. The fact of the matter is that the program I'm working on is drawing down and I don't have more then 12 months. Being me, of course, I'm planning that ---I don't want to be out of a job and have to find one. An opportunity came to me and I wasn't looking so I gave them my resume. I didn't want to say "no thanks- I'm filing bk" it would be crazy to say no to this.

Again- thank you for the info- knowing this will give me some reprieve over these otherwise sleepless nights.

[ForTheBest]

For anybody out there who has never worked for the government and may be reading this thread because they're curious about federal employment possibilities but scared about the background investigation process, I thought it might be helpful just to mention that the type of job you apply for determines how in-depth the investigation process will be.

There are three sensitivity designations for federal jobs: Non-Sensitive, Public Trust, and National Security, which correlate with six specific sensitivity levels (Levels 1 through 6).

Many, if not most, federal jobs are classified as Non-Sensitive Level 1. These jobs require an investigation called a NACI, which consists of a name and fingerprint check and written inquiries. You fill out a form listing your education, employment history, residence information, etc., along with names and addresses of contacts/references for each, and written inquiries are then sent out to those people to verify the information you provided. (They usually go back 5 years on employment and residence.) You never even talk to an investigator. As long as you're honest on the form you fill out, there's nothing to worry about. And in my experience, bankruptcy is not a barrier to employment in these jobs.

Jobs with higher sensitivity designations of course require more in-depth investigations. The higher the sensitivity, the more in-depth it gets.

If you're applying through the USAjobs website, there is usually a section in each job posting that tells you what kind of background check/investigation will be done.

If you're not familiar with the names of the different types of investigations or what they entail, here's an excellent resource: http://www.hhs.gov/ohr/manual/pssh.pdf

[jeffinva]

good info. That link explains those quite well. In the Federal Government there are many different types of clearances depending on what branch you work in.

Dept of Defense: classified, secret, top secret, top secret/sci, top secret/CI polygraph and top secret/Full Lifestyle polygraph

Most of the non-DoD agencies tend to use the clearance designations listed in the link above.

Dept of Energy for some reason had to be a rebel. Theirs goes by letter designation. A "Q" clearance is equal to a top secret. A "L" clearance is equal to a secret.

[shauner]

"It is illegal for either private or governmental employers to discriminate against a person as to employment because that person has filed under Chaper 7. It is also illegal for local, state or federal governmental units to discriminate against a person as to the granting of licenses (including driver's license), permits,student loans, and similiar grants because that person has filed under Chapter 7." -Lawyers.com

I have read this many places and it is very true that you cannot legally be discriminated against or have your bk influence a hiring decision in private or public sector work. I also asked a relative, who has worked for the IRS 20+ years and filed bankruptcy, and she confirms that government cannot use bk status in a hiring decision.