Summary
The applicant, a 56-year-old consultant/program manager, faced security concerns under Guideline F due to multiple delinquent accounts and a history of bankruptcy. Despite some efforts to resolve her debts, the judge found insufficient evidence of financial responsibility, leading to the denial of her security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant has a charged-off car loan of $12,719 (1.a). Applicant has a charged-off car loan of $8,226 (1.b). Applicant has a charged-off account of $6,098 (1.c). Applicant has a medical debt of $4,209 in collection (1.d). Applicant has a collection account of $1,853 (1.e). Applicant has a charged-off account of $733 (1.f). Applicant has a charged-off credit card of $648 (1.g). Applicant has a charged-off credit card of $456 (1.h). Applicant has a medical debt of $430 (1.i). Applicant has a medical debt of $335 (1.j). Applicant has a medical debt of $299 (1.k). Applicant has a medical debt of $271 (1.l). Applicant has a delinquent account of $263 (1.m). Applicant has a collection account of $410 (1.n). Applicant has a collection account of $406 (1.o). Applicant paid a collection account of $282 (1.p). Applicant has a collection account of $6,374 (1.q). Applicant has a collection account of $209 (1.r). Applicant has a collection account of $64 (1.s). Applicant has a collection account of $406 (1.t). Applicant paid a collection account of $410 (1.u). Applicant paid a collection account of $72 (1.v). Applicant has a charged-off account of $16,591 (1.w). Applicant filed for Chapter 7 bankruptcy in February 2012 (1.x).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(b), AG ¶ 20(d). The decision turned on the following: The applicant failed to demonstrate financial responsibility or that her financial problems were being resolved; Most of the applicant's delinquent accounts remained unresolved, and she did not provide sufficient evidence of good-faith efforts to pay her debts; The applicant's financial issues predated her bankruptcy and continued after her discharge.
Why the Applicant Was Denied
- The applicant failed to demonstrate financial responsibility or that her financial problems were being resolved.
- Most of the applicant's delinquent accounts remained unresolved, and she did not provide sufficient evidence of good-faith efforts to pay her debts.
- The applicant's financial issues predated her bankruptcy and continued after her discharge.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
- AG ¶ 20(b)rejectedConditions Beyond the Person's ControlWhile the applicant's financial problems were exacerbated by unemployment and medical issues, she did not demonstrate financial responsibility.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay DebtsThe applicant's evidence of efforts to resolve debts was insufficient and did not show adherence to a budget or recent financial counseling.
Key Rule Quoted
“Once a concern arises regarding an Applicant’s security clearance eligibility, there is a strong presumption against the grant or maintenance of a security clearance.”
Procedural Posture
- SOR issuedFeb 14, 2020
- Answer filed—Applicant requested a decision based on the written record.
- Hearing held—Decision made based on written record.
- Decision dateMar 26, 2021
Cite For
- Insufficient Evidence of Financial Responsibility Under Guideline F
- Rejection of Mitigating Conditions Related to Financial Distress
- Strong Presumption Against Granting Security Clearance When Concerns Arise