Is ATC an option if you have filed Chp 7 bankruptcy?

ATC777

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I have a large amount of credit card debt. Just applied with FAA during recent OTS bid. Considering bankruptcy to eliminate all debt besides student loans. I have mostly heard that debt/deliquencies/bad credit is okay, but at least one person has told me that a bankruptcy can be automatically disqualifying. Does anyone have some insight they can offer? I would really appreciate any advice.
 
Bad credit/debt is the number one reason for security clearance denials. A recent bankruptcy would not look good. Several years ago, ok shit happens, but during the application process? Very risky imo.
 
Bad credit/debt is the number one reason for security clearance denials. A recent bankruptcy would not look good. Several years ago, ok shit happens, but during the application process? Very risky imo.

So, for security clearance purposes, is it better to have outstanding bad credit/delinquent accounts than to pursue a discharge of those debts through bankruptcy?
 
So, for security clearance purposes, is it better to have outstanding bad credit/delinquent accounts than to pursue a discharge of those debts through bankruptcy?

Depends why you have those debts, how delinquent they are, and what you’re doing about them. Usually, if you show you’ve taken action to correct it and have worked out payment plans etc it’s no big deal. Declaring bankruptcy though basically gives the impression you were irresponsible and showed bad judgement and didn’t pay back what you owed (rightly or wrongly). At the very least, either way you can probably expect an interview with a fed agent to go over everything (it’s fairly routine don’t panic) assuming you get to that stage of the hiring process.
 
Dude just set up payment plans now. It looks better. If you become a controller then you can pay it back. If you don’t then file ch 7
 
Bankruptcy should be a last resort and not just for a security clearance. A lot of people think they need to declare bankruptcy, but with a little guidance, budgeting, being deliberate and organized, many of these people can climb out and turn their lives around. If you want any suggestions, PM me.
 
I knew a girl who had bankruptcy on her record. It had been a few years prior, but when she was at the academy, they had an investigator meet up with her to clear things up. Not a good situation to be in. If it was recent, I wouldn't even try.

There was one guy I read about with a private student loan that he didn't pay for years. The FAA didn't like it and he drug out the "appeal" process to buy him time until it dropped off, once the debt had hit 7 years and fell off, he basically said, "look now it's gone." They still shut him down...Would have just been easier to set up an income based repayment plan.
 
If you have outstanding debts that you aren’t paying on... they won’t hire you

Get them on a payment plan or prepare for disappointment
 
I had a BK 18 months prior to my hire. I had to write a letter explaining the reason and had I learned from it. The most important thing that was explained to me by the one who processes all security packages for a region (cant disclose) stated....

"If your credit had been damaged or a bk, but you have made effort and was successful prior to them running your credit then you'll be fine". If they find it and you don't have a solution ALREADY in place, they will deny you. I have been in since 2015 and about to transfer to a LVL 12.
 
You should listen to Dave Ramsey on talk radio. Podcasts are available online or his books are available. Maybe a call into him to help you get on track. Getting out of debt and being fiscally responsible is his area of expertise.
 
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