If you are planning to enlist in the armed forces, you should know that bankruptcy can affect your security clearance and your eligibility for certain positions.
Filing for bankruptcy won't automatically prevent you from joining the military, but it can affect your security clearance and the types of positions you qualify for. Depending on your circumstances and the branch you want to enlist in, you might also need to meet certain financial eligibility requirements. Read on to learn more about how bankruptcy affects your chances of joining the military.
For more information on other bankruptcy filing considerations, see our topic area on Should I File for Bankruptcy?
Financial Requirements for Military Enlistment
If you have bad credit, accounts in collection, or a previous bankruptcy, you'll typically need to meet certain financial eligibility requirements before enlisting. In general, financial eligibility determinations focus on whether you can afford to pay your current obligations on your anticipated military salary.
In some cases, a bankruptcy can actually help you meet the military's financial requirements because it eliminates many of your debts and demonstrates that you're taking a positive step toward financial responsibility. But each branch has its own eligibility standards. Whether filing for bankruptcy helps or hurts your chances depends on which branch you want to join and your particular circumstances. The best course of action: talk to a military recruiter to get more information before filing your case.
How Bankruptcy Affects Your Chances of Enlisting
Even if filing for bankruptcy won't prevent you from joining the military, it can affect:
- the positions you can qualify for, and
- your ability to obtain a security clearance.
While a bankruptcy filing can be viewed as an adverse financial event, it often reflects favorably on a prospective recruit. Taking legal steps to resolve overwhelming debt shows financial responsibility—and military recruiters frequently view a bankruptcy more positively than unresolved, mounting debt. However, some circumstances may raise concerns, including:
- multiple bankruptcy filings
- filing to eliminate debts from excessive or luxury purchases
- disobeying court orders during the bankruptcy process, and
- committing bankruptcy fraud.
Bankruptcy and Military Security Clearance
Decisions regarding security clearances are made on a case-by-case basis and can take into account multiple factors, including:
- financial responsibility
- personal conduct
- history of alcohol or drug abuse
- criminal conduct
- ties with foreign individuals and countries, and
- personality disorders.
Whether a bankruptcy will affect your security clearance also depends on your reasons for filing. For example, filing due to unforeseen circumstances—such as a medical emergency or job loss—is typically viewed more favorably than filing due to financial irresponsibility.
Talk to a Military Recruiter Before You File
Because each branch of the military has unique eligibility requirements, whether a bankruptcy filing will negatively affect your potential military career depends on the branch you want to enlist in and your specific circumstances.
Before filing your case, talk to a military recruiter in your area to learn whether filing for bankruptcy might affect your ability to enlist and the consequences it might have once you join.