Medical debt is a big burden for many who find themselves facing an unexpected health issue. Like a snowball, something that can put you out of work can affect your ability to pay medical bills, worsen your mental health, and make you feel like digging yourself out of the financial hole you are in seem impossible.
If your spouse is experiencing medical debt, you may be wondering how this could affect your security clearance. Cohabitants and their habits have been a part of Ask CJ stories in the past, but this subscriber was wondering if a debt management program could help:
Hello – I am asking for someone who is not part of this group.
She currently has Top Secret clearance. Recently, a investigator reached out her to meet and discuss security clearance but focusing on the financial.
She and her husband have incurred a lot of debts. Some are on collections. The reason for these delinquencies are the following:
- During COVID, her husband had severe health anxieties. He went to doctor visits almost every week for about a year. Copays added up from hospital visits, multiple medical procedures, and surgery.
- The Federal Accounting System had an error which decreased her net pay home for about 1000/month.
So, they decided to enter a Debt Management Program. They are thinking this will help them to pay ALL their debts within their budget even the ones that are with collection agencies.
She is scheduled to meet with the investigator. She will present all the data including the contract of Debt Management Plan and monthly budget plans.
Will this affect her Top-Secret clearance?
MEDICAL DEBT AND YOUR SECURITY CLEARANCE
While financial considerations are the top reason for clearance denial/revocation, if medical debt (and your only debt is recent) is the main issue, you are positioned well. Adjudicators consider the entire background of an individual, or the ‘whole-person’, and if there is no pattern of this behavior previously, it will be looked at favorably.
Sean Bigley, security clearance attorney, recently wrote: “Type of debt matters for security clearance holders and applicants – but only to a point. Medical debt will garner you more sympathy and leeway than general consumer debt (and definitely more than debt incurred for luxuries, as opposed to necessities), but that’s only half the battle. The other half of the equation is demonstrating that you acted reasonably and responsibly after incurring the charges.” Recently, the Wall Street Journal reported that big three credit reporting firms are going to change the way they reflect medical debt. That, along with entering a debt management program to consolidate your negative balance, will be looked favorably by adjudicators in mitigating your financial troubles.
ACCOUNTING ISSUES
In terms of the Federal Accounting System discrepancies, the main thing is to gather all documentation of the error for the investigator, and to demonstrate how the error, when unknown and then when caught, affected income and the ability to pay outstanding bills.
