Miss M wrote to me through the GetOutOfDebt.org site and asked the following question. If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.
Income from the GetOutOfDebt.org site advertising is used to help alleviate poverty. If you would like to help me to help others, there are easy and free things you can do, click here to learn how you can help.
“Dear Steve,
I was thinking of taking your advice and filing for bankruptcy. Of course, I’d like to apply to buy a house, especially during this time when the housing market is down (Good for us buyers but bad for current owners). Also, I expect to get my clearance background cleared and updated (I had a re-open investigation when I hit my 10-yr mark in 2007 but never completed it before my last job ended) and not sure if bankruptcy would affect my background investigation.
Is it good to file bankruptcy while fully employed? Would it affect my current situation and job, as far as HR and my Employer is concerned? Would my car note be discharged as well (I’m so behind with my car note but I can’t afford to catch up with the payments)? How would you suggest starting fresh for someone who is around the corner from being 30 and wanting her own place? Any further thoughts, suggestion and advice is very much appreciated. Thanks for your time! :)
Miss M”
The Answer:
Dear Miss M,
I can’t speak specifically about the status of your security clearance but if you are already behind on bills and overextended then that creates a security risk right there.
If you are worried about how bankruptcy may impact your security clearance then I would suggest that you have an open and frank discussion with your security officer at your company.
Around the corner from 30 is still young these days with many having to work into their 80s. The issue about what is best for your company, rather than yourself is a bit misdirected. I understand your concern, you don’t want to do anything to jeopardize your job but I think you need to get your own house in order first. Unless you tackle your problems head-on they will only continue to hurt you for years and years to come.
My advice is always to be as open as you can. In your case I’d ask for a confidential conversation with an HR representative and the designated security officer. If they both don’t have an issue or a problem with you acting responsibly to take care of your debt, don’t wait.
The irony here is that unless you go bankrupt to tackle the old debts you probably won’t be in a position to purchase a house in the next several years. But if you do go bankrupt, clear your old debts and get back to saving money again you’ll be ready to buy a house within a couple of years.
