Summary
A 35-year-old male applicant was denied a security clearance under Guideline F, Financial Considerations, due to a history of defaulting on five consumer accounts totaling approximately $30,000. The Statement of Reasons detailed these defaults, including two credit union credit cards charged off at $17,170 and $5,022, two bank credit cards charged off at $1,861 and $604, and a healthcare credit account charged off in collection for $5,185. The applicant admitted to owing these debts.
While the applicant cited his wife's serious illness as a contributing factor, he failed to provide sufficient evidence to mitigate the financial concerns. Specifically, he did not demonstrate a clear connection between the illness and the defaults, nor did he show a track record of responsible financial behavior.
The administrative judge noted that the applicant's Chapter 13 bankruptcy petition was filed too recently to establish a history of payments or a clear repayment plan. Consequently, the applicant's eligibility for a security clearance was denied due to insufficient evidence of mitigating circumstances or a demonstrated plan for debt resolution.
Why the Applicant Was Denied
- The applicant defaulted on five consumer accounts totaling approximately $30,000.
- He admitted to the debts but did not provide evidence linking them to his wife's illness or demonstrating responsible financial behavior.
- The applicant's Chapter 13 bankruptcy petition was filed too recently to show a track record of payments or a clear repayment plan.
Conditions Referenced
- AG ¶ 19(a)appliedInability to Satisfy Debts
- AG ¶ 19(c)appliedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlThe applicant did not demonstrate that he acted responsibly under the circumstances.
- AG ¶ 20(c)appliedReceived Financial CounselingThe applicant took a credit counseling course but did not provide evidence of resolution of his financial problems.
- AG ¶ 20(d)appliedInitiated and Is Adhering to a Good-faith Effort to Repay CreditorsThe applicant filed for Chapter 13 bankruptcy but lacked a court-approved repayment plan.
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the adjudicative guidelines.”
Procedural Posture
- SOR issuedMay 1, 2019
- Answer filedMay 31, 2019Applicant elected to have the case decided on the written record.
- Hearing held—Decision made based on written record.
- Decision dateSep 24, 2019
Cite For
- Denial of Security Clearance Due to Financial Irresponsibility Under Guideline F
- Insufficient Evidence of Mitigating Circumstances Related to Financial Issues
- Impact of Recent Bankruptcy Filing on Security Clearance Eligibility