Summary
A 59-year-old defense contractor's security clearance was reviewed under Guideline F (Financial Considerations) due to concerns including two bankruptcies and outstanding tax liabilities. Specifically, the applicant had filed a Chapter 13 bankruptcy in November 2012, which was converted to a Chapter 7 and discharged in February 2015. A second Chapter 13 bankruptcy was filed in March 2015, and initially, the applicant was delinquent on trustee payments.
Additional financial issues included an IRS debt of $14,830 for tax year 2013, an IRS debt of $6,805 for tax year 2015, and a $5,000 debt to his state of residence. The 2013 IRS debt and the state debt were both included in the ongoing Chapter 13 bankruptcy case.
Despite these concerns, the applicant demonstrated responsible financial management. He became current on his Chapter 13 bankruptcy payments and made arrangements to address his tax liabilities. The financial difficulties were largely attributed to his wife's job loss. Consequently, the security clearance was GRANTED, allowing him access to classified information.
Why the applicant prevailed
- The applicant provided evidence of responsible financial management and compliance with payment plans.
- He was current on his Chapter 13 bankruptcy payments and had made arrangements to address tax liabilities.
- The financial issues were largely beyond his control, stemming from his wife's job loss and subsequent financial difficulties.
Conditions referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 19(f)raisedFailure to Pay Annual Federal, State, or Local Income Tax as Required
- AG ¶ 20(a)appliedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur and Does Not Cast Doubt on the Individual’s Current Reliability, Trustworthiness, or Good Judgment
- AG ¶ 20(b)appliedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
- AG ¶ 20(g)appliedThe Individual Has Made Arrangements with the Appropriate Tax Authority to File or Pay the Amount Owed and Is in Compliance with Those Arrangements
Key rule quoted
“A security clearance adjudication is not a debt-collection process. Rather, my obligation is to examine the way an applicant handles his or her personal financial obligations to assess how he or she may handle their security obligations.”
Procedural posture
- SOR issuedJun 16, 2017
- Answer filedJul 15, 2017
- Hearing heldJul 19, 2018mutually agreed date
- Decision dateDec 20, 2018
Cite for
- Mitigating Conditions Under Guideline F for Financial Considerations
- Responsible Financial Management in the Context of Bankruptcy
- Impact of Circumstances Beyond Control on Financial Obligations