Access renewal

MAJ · Mar 10, 2009, 10:50

A co-worker filed for bankruptcy 3 years ago. He's up for his 5-year renewal for unescorted access. When he discloses this on his personal history questionaire to renew his badge, he's concerned how this will affect his access? Is there any precedent out there to revoke access? He has had no additional debt and has paid all bills on-time since the bankruptcy.

HydroDave63 · Mar 10, 2009, 11:57

Quote from: MAJ on Mar 10, 2009, 10:50
A co-worker filed for bankruptcy 3 years ago. He's up for his 5-year renewal for unescorted access. When he discloses this on his personal history questionaire to renew his badge, he's concerned how this will affect his access? Is there any precedent out there to revoke access? He has had no additional debt and has paid all bills on-time since the bankruptcy.

As long as he discloses it all, and is making payments, should be fine. But they will look at how it happened.

Fermi2 · Mar 10, 2009, 12:20

If they didn't pull it 3 years ago why would they now? By the way, the new finger print thing SQN uses is AWESOME. Took all of 45 seconds.

G-reg · Mar 10, 2009, 06:20

There's a common misconception that some kind of direct link exists between credit problems and security clearances. This is not the case.

Bad credit is not a "terminal illness" for security clearances, but it is a symptom - a possible indication - that a more serious problem lies beneath the surface, and must be looked into. For example: if the reason for the bad credit is a gambling addiction, then the gambling addiction (NOT the bad credit) could be a reason to deny security access. Or if the financial predicament puts an individual in a position where they might do something irrational, then that potential for irrational behavior (again, NOT the bad credit) could be a reason to deny security access.

So having bad credit basically means you're going to have to answer two follow-on questions: "How/why did it get this way?", and "How will you deal with this?". It's the answers to those two questions that will determine how much (or how little) the company can place its trust in you.

- Greg

DDMurray · Mar 10, 2009, 07:04

Quote from: MAJ on Mar 10, 2009, 10:50
A co-worker filed for bankruptcy 3 years ago. He's up for his 5-year renewal for unescorted access. When he discloses this on his personal history questionaire to renew his badge, he's concerned how this will affect his access? Is there any precedent out there to revoke access? He has had no additional debt and has paid all bills on-time since the bankruptcy.

Hard to say, but one of the first questions is likely to be why he didn't report his bankruptcy when it occurred. If he already reported it and didn't get his clearance suspended or revoked, I think he should be fine.

DM

G-reg · Mar 10, 2009, 09:18

Quote from: DDMurray on Mar 10, 2009, 07:04
... one of the first questions is likely to be why he didn't report his bankruptcy when it occurred.

Yes, this would be very bad ju-ju.

HydroDave63 · Mar 10, 2009, 11:17

Quote from: DDMurray on Mar 10, 2009, 07:04
Hard to say, but one of the first questions is likely to be why he didn't report his bankruptcy when it occurred.

To whom would he report it? Unlike a misdemeanor arrest for 35 over the speed limit or shoplifting, bankruptcy is a civil, not criminal matter. Normally the supervision would have no need to know on a civil matter, unless the employee needed time off of work for court appearances.

DDMurray · Mar 11, 2009, 04:47

Quote from: HydroDave63 on Mar 10, 2009, 11:17
To whom would he report it? Unlike a misdemeanor arrest for 35 over the speed limit or shoplifting, bankruptcy is a civil, not criminal matter. Normally the supervision would have no need to know on a civil matter, unless the employee needed time off of work for court appearances.

If a condition of your clearance was a satisfactory credit report, then a bankruptcy affects a condition of your employment. I think it would be prudent, as uncomfortable it may be, to report it to your supervisor and nuclear security. I researched our company's policies today. Even though it clearly says a credit report is a condition of the clearance, it doesn't say what to do if you file for bankruptcy. To me that makes it a gray area, so maybe HR should be consulted. It may not be as big as deal as I originally thought.

DM

Nuclear NASCAR · Mar 11, 2009, 07:30

I think this might be in flux right now. I know that our reporting requirements are changing from arrest & conviction reporting to basically reporting ANY court appearances. If that's the case industry-wide (showing my ignorance again) then I'd have to think it's a non-issue. For peace of mind, I'd just ask and get it out of the way now.

If you would, please let us know how this turns out. I'm sure there are more people out there with a similar concern.

Thanks,
Tom

MAJ · Mar 12, 2009, 09:12

Why no disclosure 3 years ago? Likely to not draw any unnecessary attention when nothing in company policy requires it. Also, he wanted some time to develop a good credit history. By the way, the bankruptcy was strictly due to real estate investment that went south (similar to today), not massive credit card debt or gambling or anything like that. Also, all of the debt was discharged and he has no debt today or over the past couple of years.

Does anyone out there know of any precedent in such cases? Thanks for all of the responses.

Access renewal

MAJ

Fermi2

MAJ