Summary
A 43-year-old employee of a DOD contractor was denied a security clearance under Guideline F (Financial Considerations) due to a history of financial instability. The applicant admitted to filing for Chapter 7 bankruptcy in March 2018, which discharged debts totaling $39,057 against assets of $21,193 by July 2018.
Following the bankruptcy discharge, the applicant incurred 11 new delinquent debts totaling approximately $15,513. These included several charged-off accounts, such as one for $4,824 and another for $802, as well as multiple credit card accounts placed for collection, with balances of $4,153, $2,105, $740, and $369. Other delinquent accounts included balances of $872, $351, and one with an unknown balance, along with a $500 debt owed to the IRS for tax year 2023.
The judge found insufficient evidence of the applicant's efforts to resolve these delinquent accounts. The applicant did not demonstrate that her financial situation was under control or that she had received financial counseling, leading to the denial of her security clearance application.
Why the Applicant Was Denied
- The applicant admitted to filing for Chapter 7 bankruptcy and having multiple delinquent debts totaling approximately $15,513.
- The judge found that the applicant failed to provide sufficient evidence of efforts to resolve her delinquent accounts.
- The applicant did not demonstrate that her financial situation was under control or that she received financial counseling.
Conditions Referenced
- AG ¶ 19(a)appliedInability to Satisfy Debts
- AG ¶ 19(c)appliedHistory of Not Meeting Financial Obligations
- AG ¶ 19(f)appliedFailure to Pay Taxes as Required
- AG ¶ 20(b)rejectedConditions Beyond ControlWhile the applicant's divorce created financial hardship, she did not act responsibly under the circumstances.
- AG ¶ 20(c)rejectedFinancial CounselingThere is no indication that the applicant received financial counseling or that her financial situation is under control.
- AG ¶ 20(g)rejectedArrangements with Tax AuthorityNo evidence was provided that the applicant's tax debt was resolved.
Key Rule Quoted
“An applicant has the ultimate burden of demonstrating that it is clearly consistent with the national interest to grant or continue her security clearance.”
Procedural Posture
- SOR issuedFeb 20, 2025
- Answer filedMar 24, 2025Requested decision based on written record.
- Hearing heldNov 19, 2025
- Decision dateNov 19, 2025
Cite For
- Denial of Security Clearance Due to Financial Irresponsibility Under Guideline F
- Insufficient Evidence of Mitigation Efforts in Financial Cases
- Impact of Personal Circumstances on Financial Obligations and Security Clearance Eligibility