Summary
A 35-year-old defense contractor employee was denied a security clearance due to financial considerations under Guideline F. The applicant's financial history included filing for Chapter 7 bankruptcy in August 2020, with debts discharged in November 2020. Additionally, the applicant admitted to several past-due debts, including approximately $5,276 owed to Creditor A, about $2,650 to Creditor D, and roughly $2,010 to Creditor F.
The applicant also acknowledged, but disputed, alleged past-due debts of approximately $2,204 to Creditor E and an unstated charged-off amount to Creditor S. One allegation, 1.r, was withdrawn by the Government.
The denial was based on the applicant's admitted significant past-due debts exceeding $10,000. The administrative judge determined that the applicant failed to provide sufficient evidence of a good-faith effort to resolve these financial issues, despite being given ample opportunity to do so. Consequently, the applicant was denied eligibility for access to classified information.
Why the Applicant Was Denied
- The applicant admitted to significant past-due debts exceeding $10,000.
- The applicant failed to provide sufficient evidence of a good-faith effort to resolve her financial issues despite being given ample opportunity.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedBehavior Happened Long Ago or InfrequentlyThe applicant's financial problems are ongoing.
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlWhile some issues were attributed to COVID, the applicant still has significant past-due debts.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay DebtsThe applicant did not demonstrate a good-faith effort to address her debts.
- AG ¶ 20(e)rejectedReasonable Basis to Dispute DebtsThe applicant failed to provide documentation to support her disputes.
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 issuedFeb 13, 2025
- Answer filedMar 10, 2025
- Hearing heldAug 21, 2025
- Decision dateDec 4, 2025Decision delayed due to a Federal Government shutdown.
Cite For
- Denial of Security Clearance Based on Financial Considerations Under Guideline F
- Importance of Demonstrating Good-faith Efforts to Resolve Financial Issues
- Ongoing Financial Problems as a Basis for Security Clearance Denial