Expert: Rod Powers - 12/6/2006

Question
I am interested in joining the Army for quite a few reasons, yet I have a large concern. I graduated from college not too long ago and, unfortunately, have a lot of debt. In the years that I was in college I used credit cards to help with tuition and living expenses and racked up my bills. For the absolute majority of the time I have been responsible with my financial obligations and haven't had any problems. However, for the past 18 months I've been struggling with finances and am considering bankruptcy. It has been over these last 18, or so, months that I have attempted to get my bills back under control, but have had a hard time with under employment and unemployment. I would get everything in good standing, then fall behind again from being laid off or losing hours or losing the job entirely. Then I'd do it agian, and again. I have even relocated to a better area that offers more in terms of employment and pay, but that hasn't helped my situation. I have seeked credit counseling and given my situation, it is suggested that I do file for bankruptcy since I am having troubles finding gainful employment and the debts are getting more out of control.

I know a recent bankruptcy is bad, but could that be overlooked? I have tried to pay my debts over an 18 month period of hard times (in and out of collections) after having around 8 years of credit history. My debts are the result of increasing costs during my college career and not wasteful spending. I have seeked credit counseling. I haven't had these problems before it began 18 months ago. And it certainly won't happen again. The problem is that I've fallen so far behind that it would be very difficult to meet my past financial obligations, though I wish I could. With the bankruptcy I would be able to start over, would absolutely stay up with my current bills, but would it cost me a secret security clearance or even admission into the Army?

Also, I do not have any drug history, criminal history, or anything else like that. My credit/financial position is the only issue.

Thank you,
Tony
ASVAB 86
GT 123
AFAST 103

Answer
Hi Tony,

I wish I could answer "yes" or "no," but I can't (nor can any recruiter). Recent bankrupcy requires a waiver. Each and every waiver is evaluated individually, using several individual factors.

For example, bankruptcy for unexpected medical bills is a whole lot better than declaring bankruptcy because one made a lot of charges to party.

All you can do is submit your particular case, and see what the "waiver approval authorities" decide. Again, each and every case is evaluated, based on their own individual circumstances.

Hope this helps!

Rod Powers
http://usmilitary.about.com