Bad Debt Reason for Security Clearance Denial

Bad Debt  Reason for Security Clearance Denial

Debtors are finding that bad debt may prevent them from getting not only credit but a security clearance.  Department of Defense (DoD) is not likely to approve applicants for a security clearance if they have bad debts.

Debtors may think they have valid reasons for not paying debt however ignoring, refusing to pay or refusal to show a good faith effort to establish a payment plan or resolving  in some satisfactory way can cost them job with the DoD or its contractors.

Among the types of bad debt that can cause a denial is defaulted federal student loans, debt to the Internal Revenue Service IRS and consumer debt.

Consumer credit checks are now standard procedure for screen applicants for not only DoD jobs but with private employers as well.

Employers state that one of the reason they do credit checks is to stop criminal activity.   The federal government wants to be sure employees with access to classified information are not inclined to disclose secrets. Additionally most states allow credit report to be used in the employment screening process.