What happens if denied secret clearance while in OCS?

Question

My husband left for OCS at Ft. Benning June 12. He is scheduled to graduate 9/11. Just before he left we had to file bancruptcy due to him being laid off for about 1 year. I finished the discharge (with power of attorney) while he has been gone. As we hadn't yet discharged when he applied for OCS, the bancruptcy was not on his application.

He now has an interview scheduled with someone from security clearance. We have documentation showing we went first through credit counseling and then a law firm trying to restructure our debt. During the credit counseling we had no late payments on our report... When my husband lost his job in June 2007, we went through a firm that collected our payments and then was to work with our creditors and settle. Unfortunately after a few months we learned that this was not an acceptable solution for our creditors and were left with no other option but bancruptcy. We can show monthly payments in good faith up until the filing as well as good payment history with our mortgage and car.

Is there a possibility that he will be able to get a waiver for secret clearance? He had secret clearance when he was in the Marine Corps from 1992-2000 if that makes a difference.

If he is denied clearance, what happens? Does he just get sent home, or does he serve his remaining time as enlisted army with a MOS that doesn't need clearance? Does he have a choice? If he is denied clearance but be put in enlisted ranks, will he have an opportunity to retry for a waiver after we've had more time since the bancruptcy to prove fiscal responsibility?

Answer 1

I don't think there are any officer positions that you can have without a clearance.  More then likely he'll have to serve his time in an enlisted position which doesn't require one.  It'll take a few years to prove your financial irresponsibility has been corrected.

Answer 2

yup most likely will not get a clearance with that bankruptcy.

Answer 3

As for the clearance, financial matters are tricky. But as long as you don't hide anything and can show that you made/are making good faith efforts to rectify the situation, they are usually ok with it.

Unfortunately, if he cannot get his commission, he will become an enlisted soldier. If you look at his contract where it states that he is going to OCS, there is a section that deals with what happens if he cannot complete the course. He will be sent "needs of the army". They will try to, at least, give him some choice for picking an MOS. And yes, if this happens, he will have a chance to re-apply.

Answer 4

Goodbye lieutenant's bars and hello Sergeant stripes; you cannot be granted federal recognition as a commissioned officer without a security clearance.  Most likely he will be assigned to an MOS which he is most familiar with or most compatible to his prior service.  The pre-existance of another security clearance is no guarantee of being given another clearance at a later date, sorry!