Summary
A 56-year-old former U.S. Army service member was denied a security clearance under Guideline F (Financial Considerations) due to unresolved financial issues. The Statement of Reasons detailed three Chapter 13 bankruptcy petitions: one filed in April 1999 and discharged in August 2001; another filed in January 2010 and dismissed in October 2011 for non-payment; and a third filed in April 2012 and dismissed in August 2016.
Additionally, the applicant admitted to a past-due mortgage account with arrearages persisting for over five years, and eleven medical delinquencies totaling $1,492 that had been placed for collection. The applicant did not provide sufficient evidence to demonstrate control over these financial problems or offer adequate details, with corroborating documentation, regarding efforts to address the debts outlined in the Statement of Reasons.
The denial was based on the applicant's history of multiple bankruptcies and delinquent debts, a failure to provide sufficient evidence of mitigation or resolution for these debts, and a lack of demonstrated responsible financial behavior, including a failure to respond to a FORM.
Why the Applicant Was Denied
- The applicant had multiple bankruptcies and delinquent debts totaling $1,492.
- The applicant did not provide sufficient evidence of mitigation or resolution of debts.
- The applicant failed to respond to the FORM and did not demonstrate responsible financial behavior.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(b)raisedUnwillingness to Satisfy Debts Regardless of the Ability to Do So
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to RecurThe applicant's financial issues are ongoing and have not been resolved.
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlWhile some conditions were beyond the applicant's control, he did not act responsibly to resolve his debts.
- AG ¶ 20(c)rejectedReceived or Is Receiving Financial CounselingThe applicant did not provide evidence of financial counseling.
- AG ¶ 20(d)rejectedInitiated and Is Adhering to a Good-faith Effort to Repay Overdue CreditorsThe applicant did not provide documentation of any efforts to repay debts.
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedJul 6, 2018
- Answer filed2018-08-2018
- Hearing held—Decided on the written record.
- Decision dateJan 29, 2019
Cite For
- Failure to Provide Evidence of Financial Mitigation Under Guideline F
- Ongoing Financial Issues as a Disqualifying Factor
- Importance of Documentary Evidence in Financial Cases