Summary
A 55-year-old safety manager was denied a security clearance under Guideline F (Financial Considerations) due to a history of significant financial issues. The Statement of Reasons detailed two Chapter 7 bankruptcy discharges, a Chapter 13 bankruptcy petition, and multiple delinquent debts. These included a charged-off car loan, several collection accounts for various debts, and a charged-off credit card account, all incurred after a bankruptcy discharge.
The administrative judge identified disqualifying conditions related to the applicant's financial irresponsibility and failure to meet financial obligations. While mitigating conditions such as the debts being resolved or the issues being beyond the applicant's control were considered, they were not found to apply sufficiently in this case.
The denial was based on the applicant's long-standing pattern of financial problems, including the multiple bankruptcies. The applicant failed to demonstrate responsible conduct, providing no evidence of payments or resolution for several delinquent accounts. Furthermore, the financial issues were not adequately mitigated by circumstances beyond his control or by evidence of financial counseling.
Why the Applicant Was Denied
- The applicant has a long history of financial problems, including two Chapter 7 bankruptcies and a Chapter 13 bankruptcy petition.
- The applicant did not demonstrate responsible conduct regarding his debts, failing to provide evidence of payments or resolution for several delinquent accounts.
- The applicant's financial issues were not sufficiently mitigated by circumstances beyond his control or by evidence of financial counseling.
Conditions Referenced
- AG ¶ 19(a)appliedInability to Satisfy Debts
- AG ¶ 19(b)appliedUnwillingness to Satisfy Debts Regardless of the Ability to Do So
- AG ¶ 19(c)appliedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedBehavior Happened Long Ago or InfrequentlyThe applicant's delinquent debts are numerous and recent.
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlThe applicant did not demonstrate reasonable efforts to resolve debts before bankruptcy.
- AG ¶ 20(c)rejectedReceived Financial CounselingThe applicant did not provide evidence of effective financial counseling.
- AG ¶ 20(d)appliedGood-faith Effort to Repay DebtsEstablished for some debts, but not for all.
- AG ¶ 20(e)rejectedReasonable Basis to Dispute DebtsThe applicant did not provide evidence regarding the basis for disputes.
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the adjudicative guidelines.”
Procedural Posture
- SOR issuedAug 20, 2018
- Answer filedSep 4, 2018
- Hearing held—Decision made on the written record.
- Decision dateJan 31, 2019
Cite For
- Denial Based on Financial Irresponsibility Under Guideline F
- Impact of Multiple Bankruptcies on Security Clearance Eligibility
- Failure to Demonstrate Mitigation of Financial Issues in Security Clearance Cases