Summary
A 47-year-old human resources manager was denied a security clearance under Guideline F (Financial Considerations) due to a history of delinquent debts and a Chapter 13 bankruptcy. The Statement of Reasons cited nine delinquent debts, including collections for phone and cable services, and a student loan totaling $6,814. The applicant also had unpaid homeowners association fees, which were later resolved, and delinquent debts stemming from a September 2017 auto accident. A Chapter 13 bankruptcy was filed in 2010 and discharged in 2015.
The applicant's financial issues included nine delinquent debts totaling $38,423, which encompassed a Federal tax lien and the student loan in collection. Disqualifying conditions under Guideline F were raised, while several mitigating conditions were also considered.
Ultimately, the clearance was denied because the applicant failed to provide evidence that her tax lien was released or that other disputed debts were resolved. The judge determined that the applicant's financial issues were longstanding and unresolved, leading to insufficient evidence of financial responsibility and a lack of control over her financial status.
Why the Applicant Was Denied
- The applicant had nine delinquent debts totaling $38,423, including a Federal tax lien and a student loan collection account.
- The applicant failed to provide evidence that her tax lien was released or that disputed debts were resolved.
- The applicant's financial issues were longstanding and unresolved, raising doubts about her financial responsibility.
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 ¶ 19(f)raisedFailure to File or Fraudulently Filing Annual Federal, State, or Local Income Tax Returns or Failure to Pay Annual Federal, State, or Local Income Tax as Required
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
- AG ¶ 20(c)rejectedReceived or Is Receiving Financial Counseling
- AG ¶ 20(d)rejectedInitiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors
- AG ¶ 20(e)rejectedHas a Reasonable Basis to Dispute the Legitimacy of the Past-due Debt
- AG ¶ 20(g)rejectedHas Made Arrangements with the Appropriate Tax Authority to File or Pay the Amount Owed
Key Rule Quoted
“[N]o one has a ‘right’ to a security clearance.”
Procedural Posture
- SOR issuedFeb 11, 2019
- Answer filedFeb 28, 2019
- Hearing held—Decision based on written record.
- Decision dateJun 21, 2019
Cite For
- Insufficient Evidence of Financial Responsibility Under Guideline F
- Longstanding Unresolved Debts as a Basis for Denial
- Failure to Demonstrate Financial Stability Post-bankruptcy