Summary
A 54-year-old configuration and data manager was denied a security clearance under Guideline F (Financial Considerations) due to significant and ongoing financial difficulties. The Statement of Reasons detailed approximately $90,000 in delinquent debts, including about $81,000 in credit card balances, a $7,178 personal loan, and a $995 judgment related to a timeshare. While a $7,019 past-due mortgage was rectified, the applicant had a history of not meeting financial obligations, including reliance on payday loans and credit cards.
In September 2018, the applicant filed for Chapter 13 bankruptcy protection, listing nearly $90,000 in delinquent debt. Disqualifying conditions under Adjudicative Guideline (AG) ¶ 19(a), AG ¶ 19(b), and AG ¶ 19(c) were raised. Mitigating conditions under AG ¶ 20(b), AG ¶ 20(c), and AG ¶ 20(d) were applied.
However, the judge ultimately denied the application. The decision cited the applicant's failure to demonstrate sufficient progress in resolving her financial obligations, despite the bankruptcy filing and financial counseling. The judge concluded that the applicant's longstanding financial issues had not been adequately addressed in a timely manner.
Why the Applicant Was Denied
- The applicant failed to demonstrate sufficient progress in resolving her financial obligations despite filing for bankruptcy.
- The judge noted that the applicant's financial issues were longstanding and not adequately addressed in a timely manner.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(b)raisedUnwillingness to Satisfy Debts Regardless of the Inability to Do So
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlThe applicant's financial difficulties were exacerbated by her husband's lack of financial contribution.
- AG ¶ 20(c)appliedReceived Counseling for the ProblemThe applicant received financial counseling, but it did not lead to significant progress.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsThe applicant's bankruptcy filing was too recent to demonstrate a meaningful track record of timely payments.
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedDec 22, 2017
- Answer filedJan 22, 2018Applicant admitted all allegations.
- Hearing heldOct 2, 2018Hearing convened as scheduled.
- Decision dateMar 15, 2019
Cite For
- Denial of Security Clearance Based on Financial Considerations Under Guideline F
- Insufficient Evidence of Financial Rehabilitation Despite Bankruptcy Filing
- Impact of Long-standing Financial Issues on Security Clearance Eligibility