Summary
A 54-year-old software engineer was denied a security clearance under Guideline F, Financial Considerations, due to a history of multiple bankruptcies and a pattern of financial irresponsibility. The Statement of Reasons detailed four bankruptcy filings: Chapter 7 in August 2001, Chapter 7 in May 2010 with $56,368 in unsecured claims discharged, Chapter 13 in May 2017 which was dismissed for failure to make plan payments, and Chapter 7 in June 2018 with $64,102 in unsecured claims.
The judge identified disqualifying conditions related to a history of not meeting financial obligations and an inability or unwillingness to satisfy debts. While the applicant sought to mitigate these concerns through counseling and budgeting, the judge determined these efforts were insufficient.
Ultimately, the judge found that the applicant's three Chapter 7 bankruptcies and failure to complete a Chapter 13 payment plan demonstrated a lack of good faith in managing debts, raising significant questions about his reliability and trustworthiness. Consequently, the security clearance was denied.
Why the Applicant Was Denied
- The applicant had three Chapter 7 bankruptcies from 2001 to 2018, indicating a pattern of financial irresponsibility.
- The applicant failed to complete a Chapter 13 bankruptcy payment plan, demonstrating a lack of good faith in managing his debts.
- The judge found that the applicant's financial issues raised questions about his reliability and trustworthiness.
Conditions Referenced
- 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(c)appliedThe Individual Has Received or Is Receiving Financial CounselingThe applicant received financial counseling and completed several financial courses.
- AG ¶ 20(d)rejectedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue CreditorsThe applicant did not establish good faith when he failed to complete the Chapter 13 payment plan.
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 issuedJan 11, 2019
- Answer filedJul 15, 2019
- Hearing heldOct 21, 2019
- Decision dateNov 21, 2019
Cite For
- Denial of Security Clearance Due to Financial Irresponsibility Under Guideline F
- Impact of Multiple Bankruptcies on Security Clearance Eligibility
- Evaluation of Mitigating Factors in Financial Considerations Cases