I went through Secret and then Top Secret SSBI with prior financial problems showing. In each case I had to explain how I got in trouble, what I did about it, and was cleared.
Years later after I had stopped doing cleared work and my clearances had lapsed I filed Chapter 7 BK. My attorney told me he has represented folks with clearances and never had one pulled for BK. Filing BK is a responsible and legal step. We didn't discuss applicants for clearance.
I agree with other posters, being visibly candid and honest is the most important thing. Making arrangements to pay the $1300 in collections might help as well.
