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Summary

The applicant, a 49-year-old retired military member, faced security clearance denial under Guideline F due to significant financial difficulties, including a Chapter 7 bankruptcy filing and multiple delinquent debts totaling over $31,000. The judge emphasized the applicant's lack of financial oversight and responsibility, despite acknowledging the impact of serious medical issues on the family's finances.

Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant owed charged-off debts of $9,842 (SOR ¶ 1.a); $4,333 (SOR ¶ 1.b); $2,026 (SOR ¶ 1.d); $934 (SOR ¶ 1.f); $560 (SOR ¶ 1.g); $3,384 (SOR ¶ 1.i); and $2,785 (SOR ¶ 1.j) (1.a). Applicant owed charged-off debts of $9,842 (SOR ¶ 1.a); $4,333 (SOR ¶ 1.b); $2,026 (SOR ¶ 1.d); $934 (SOR ¶ 1.f); $560 (SOR ¶ 1.g); $3,384 (SOR ¶ 1.i); and $2,785 (SOR ¶ 1.j) (1.b). Applicant was alleged to owe collection debts of $3,598 (SOR ¶ 1.c); $1,542 (SOR ¶ 1.e); $229 (SOR ¶ 1.h); $2,336 (SOR ¶ 1.k); and $319 (SOR ¶ 1.l) (1.c). Applicant owed charged-off debts of $9,842 (SOR ¶ 1.a); $4,333 (SOR ¶ 1.b); $2,026 (SOR ¶ 1.d); $934 (SOR ¶ 1.f); $560 (SOR ¶ 1.g); $3,384 (SOR ¶ 1.i); and $2,785 (SOR ¶ 1.j) (1.d). Applicant was alleged to owe collection debts of $3,598 (SOR ¶ 1.c); $1,542 (SOR ¶ 1.e); $229 (SOR ¶ 1.h); $2,336 (SOR ¶ 1.k); and $319 (SOR ¶ 1.l) (1.e). Applicant owed charged-off debts of $9,842 (SOR ¶ 1.a); $4,333 (SOR ¶ 1.b); $2,026 (SOR ¶ 1.d); $934 (SOR ¶ 1.f); $560 (SOR ¶ 1.g); $3,384 (SOR ¶ 1.i); and $2,785 (SOR ¶ 1.j) (1.f). Applicant owed charged-off debts of $9,842 (SOR ¶ 1.a); $4,333 (SOR ¶ 1.b); $2,026 (SOR ¶ 1.d); $934 (SOR ¶ 1.f); $560 (SOR ¶ 1.g); $3,384 (SOR ¶ 1.i); and $2,785 (SOR ¶ 1.j) (1.g). Applicant was alleged to owe collection debts of $3,598 (SOR ¶ 1.c); $1,542 (SOR ¶ 1.e); $229 (SOR ¶ 1.h); $2,336 (SOR ¶ 1.k); and $319 (SOR ¶ 1.l) (1.h). Applicant owed charged-off debts of $9,842 (SOR ¶ 1.a); $4,333 (SOR ¶ 1.b); $2,026 (SOR ¶ 1.d); $934 (SOR ¶ 1.f); $560 (SOR ¶ 1.g); $3,384 (SOR ¶ 1.i); and $2,785 (SOR ¶ 1.j) (1.i). Applicant was alleged to owe collection debts of $3,598 (SOR ¶ 1.c); $1,542 (SOR ¶ 1.e); $229 (SOR ¶ 1.h); $2,336 (SOR ¶ 1.k); and $319 (SOR ¶ 1.l) (1.j). Applicant was alleged to owe collection debts of $3,598 (SOR ¶ 1.c); $1,542 (SOR ¶ 1.e); $229 (SOR ¶ 1.h); $2,336 (SOR ¶ 1.k); and $319 (SOR ¶ 1.l) (1.k). Applicant was alleged to owe collection debts of $3,598 (SOR ¶ 1.c); $1,542 (SOR ¶ 1.e); $229 (SOR ¶ 1.h); $2,336 (SOR ¶ 1.k); and $319 (SOR ¶ 1.l) (1.l).

The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The decision turned on the following: The applicant's financial issues were significant and unresolved at the time of the hearing; The applicant failed to demonstrate responsible financial management and oversight of debts; The applicant's bankruptcy filing occurred shortly before the hearing, indicating a lack of proactive financial resolution.

Why the Applicant Was Denied

• The applicant's financial issues were significant and unresolved at the time of the hearing.
• The applicant failed to demonstrate responsible financial management and oversight of debts.
• The applicant's bankruptcy filing occurred shortly before the hearing, indicating a lack of proactive financial resolution.

Conditions Referenced

Key Rule Quoted

“Failure to live within one’s means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual’s reliability, trustworthiness, and ability to protect classified or sensitive information.”

Procedural Posture

• SOR issuedOct 5, 2018
• Answer filedNov 13, 2018
• Hearing heldFeb 14, 2019
• Decision dateApr 17, 2019

Cite For

• Financial Responsibility Under Guideline F
• Impact of Medical Issues on Financial Stability
• Timing of Bankruptcy Filings in Security Clearance Cases