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Summary

A 39-year-old divorced mother of five was denied a security clearance under Guideline F (Financial Considerations) due to significant delinquent debt and a past bankruptcy. The Statement of Reasons cited approximately $29,961 in delinquent debt across 19 accounts, in addition to a Chapter 7 bankruptcy discharged in 2014. These issues raised disqualifying conditions under Adjudicative Guidelines Paragraphs 19(a) and 19(c).

The denial was based on the applicant's failure to provide sufficient documentation to demonstrate financial responsibility. The judge determined that her financial situation raised doubts about her reliability and trustworthiness.

Furthermore, the applicant did not seek financial counseling or demonstrate a good-faith effort to resolve her outstanding debts. Consequently, the security clearance was denied.

Why the Applicant Was Denied

• The applicant failed to provide sufficient documentation to support her financial responsibility.
• The applicant's financial situation raised doubts about her reliability and trustworthiness.
• The applicant did not seek financial counseling or demonstrate a good-faith effort to resolve her debts.

Conditions Referenced

Key Rule Quoted

“Failure to live within one's means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual's reliability, trustworthiness, and ability to protect classified or sensitive information.”

Procedural Posture

• SOR issuedDec 17, 2021
• Answer filed—Applicant elected to have her case decided on the written record.
• Hearing held—Decision made based on written record.
• Decision dateJul 19, 2022

Cite For

• Insufficient Evidence of Financial Responsibility Under Guideline F
• Impact of Financial Distress on Security Clearance Eligibility
• Importance of Financial Counseling in Mitigating Security Concerns