Summary
A 42-year-old transportation officer was denied a security clearance due to financial considerations under Guideline F. The applicant faced concerns stemming from defaults on 13 consumer accounts, totaling approximately $28,000, and two Chapter 7 bankruptcy filings in 2001 and February 2019.
Specific allegations included an $11,012 debt to a credit union following a motorcycle repossession, an $11,449 debt and a $3,465 debt from two separate vehicle repossessions, and a $408 charged-off credit card account. Additional debts included $722 to a cellphone provider, $431 and $202 to TV entertainment providers, and medical collection accounts for $234, $95, and $47. The applicant disputed debts of $365 to a bank, $771 to a furniture store, and $312 for personal property taxes.
The judge found that the applicant admitted to owing most of the debts but provided insufficient evidence to mitigate the financial concerns or demonstrate responsible financial management. Consequently, the security clearance eligibility was denied.
Why the Applicant Was Denied
- The applicant defaulted on multiple consumer accounts, admitting to debts totaling approximately $28,000.
- The applicant filed two Chapter 7 bankruptcy petitions but provided insufficient evidence to demonstrate responsible financial management or mitigation of debts.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedBehavior Happened Long Ago or InfrequentlyThe applicant's financial issues are current and frequent.
- AG ¶ 20(b)appliedConditions Largely Beyond the Person's ControlSome debts became delinquent after the applicant's partner lost her job.
- AG ¶ 20(c)appliedReceived Financial CounselingThe applicant received credit counseling but did not demonstrate its effectiveness.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay CreditorsFiling for bankruptcy does not constitute a good-faith effort to repay debts.
- AG ¶ 20(e)rejectedReasonable Basis to Dispute DebtsThe applicant did not provide documentation to support disputes of the debts.
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the adjudicative guidelines.”
Procedural Posture
- SOR issuedApr 12, 2019
- Answer filedMay 9, 2019Applicant elected to have the case decided on the written record.
- Hearing held—Decision made based on written record.
- Decision dateSep 30, 2019
Cite For
- Denial of Security Clearance Due to Financial Irresponsibility Under Guideline F
- Insufficient Evidence of Mitigation in Financial Concerns Cases
- Impact of Bankruptcy Filings on Security Clearance Eligibility