If you are in the military, you have the same right to file for bankruptcy relief as a civilian. In fact, active-duty military personnel and disabled veterans enjoy certain benefits over non-military bankruptcy debtors. However, filing for bankruptcy also has the potential to affect your security clearance under certain circumstances.
In general, filing for bankruptcy relief will not automatically prohibit you from obtaining a security clearance. But being financially irresponsible can jeopardize your security clearance. This means that whether your bankruptcy will affect your security clearance typically depends on the circumstances
A powerful federal law helps active service persons handle their legal affairs and reduce financial obligations while on active duty. This law -- the Servicemembers' Civil Relief Act -- allows active duty personnel to obtain reduced interest rates on loans, cancel residential and commercial leases, delay eviction proceedings, and more. Learn how this law can help you while you are away on military duty.