Summary
A 35-year-old federal contractor was denied a security clearance under Guideline F, Financial Considerations, due to ongoing financial issues and a lack of demonstrated financial responsibility. The applicant admitted to all allegations in the Statement of Reasons, which included a history of not meeting financial obligations, maxing out credit cards, and being unable to pay debts.
The applicant filed for Chapter 7 bankruptcy, anticipating the discharge of all remaining debts listed in the Statement of Reasons. However, the judge determined that the applicant's financial problems were ongoing and not sufficiently mitigated by the bankruptcy discharge or other actions.
Ultimately, the denial was based on the applicant's failure to demonstrate a clear plan for resolving financial issues or good-faith efforts to repay creditors, emphasizing the necessity of financial stability for security clearance eligibility.
Why the applicant was denied
- The applicant admitted to all financial allegations in the SOR, including a history of not meeting financial obligations.
- The applicant's financial problems were ongoing and not sufficiently mitigated by his bankruptcy discharge or other actions taken.
- The applicant failed to demonstrate a clear plan for resolving his financial issues or good-faith efforts to repay creditors.
Conditions referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)appliedConditions Largely Beyond the Person's ControlThe applicant's financial problems were partially attributed to circumstances beyond his control, such as medical expenses and reduced income.
- AG ¶ 20(c)rejectedReceived Counseling for the ProblemThe applicant's evidence was insufficient to show clear indications that his financial problems were resolved or under control.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay CreditorsThe applicant did not present sufficient evidence of good-faith efforts to pay his debts before or after his bankruptcy filing.
Key rule quoted
“Once a concern arises regarding an applicant’s security clearance eligibility, there is a strong presumption against the grant or maintenance of a security clearance.”
Procedural posture
- SOR issuedApr 23, 2018
- Answer filedMay 11, 2018
- Hearing heldNov 29, 2018Hearing was rescheduled from an earlier date.
- Decision dateFeb 14, 2019
Cite for
- Insufficient Evidence of Financial Responsibility Under Guideline F
- Importance of Demonstrating a Clear Plan to Resolve Financial Issues
- Presumption Against Granting Security Clearance When Concerns Arise