Summary
A 42-year-old security officer was denied a security clearance under Guideline F (Financial Considerations) due to a history of financial irresponsibility. The applicant admitted to all allegations, which included filing for Chapter 7 bankruptcy in March 2014 while unemployed, with assets of $12,000 and liabilities of $55,802, including $31,477 in student loans.
Additional concerns involved an insurance company debt of $170 referred for collection, for which no information was provided. The applicant also had two automobile deficiencies: one for $6,437 after a voluntary repossession, with no contact made to the creditor, and another for $15,264 after a repossession, where a payment agreement was not followed through.
The denial was based on the applicant's admission to these financial issues and a failure to demonstrate any mitigating circumstances. Specifically, the applicant did not provide evidence of actions taken to resolve debts or show a good-faith effort to repay creditors. The financial problems were deemed ongoing and not incurred under circumstances that would prevent their recurrence.
Why the applicant was denied
- The applicant admitted to all allegations of financial irresponsibility, including a Chapter 7 bankruptcy and multiple unresolved debts.
- The applicant did not provide evidence of actions taken to resolve her debts or demonstrate a good-faith effort to repay creditors.
- The applicant's financial issues were ongoing and not incurred under circumstances that would make them unlikely to recur.
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 so Long Ago, Was Infrequent, or Occurred Under Circumstances Unlikely to RecurThe applicant's delinquent debts are numerous and ongoing.
- AG ¶ 20(b)rejectedConditions Resulting in Financial Problems Were Largely Beyond the Person's ControlThe applicant left a full-time job voluntarily and did not act responsibly toward her creditors.
- AG ¶ 20(c)rejectedReceived Financial Counseling From a Legitimate SourceThe applicant did not demonstrate that her financial problems are being resolved or under control.
- AG ¶ 20(d)rejectedInitiated and Adhered to a Good-faith Effort to Repay CreditorsThe applicant relied on bankruptcy to avoid paying her creditors.
Key rule quoted
“[N]o one has a ‘right’ to a security clearance.”
Procedural posture
- SOR issuedMay 20, 2025
- Answer filedMay 22, 2025
- Hearing heldDec 15, 2025Originally scheduled for October 17, 2025, but cancelled due to a federal government shutdown.
- Decision dateJan 12, 2026
Cite for
- Denial of Security Clearance Due to Financial Irresponsibility Under Guideline F
- Failure to Demonstrate Mitigating Circumstances for Financial Issues
- Impact of Ongoing Financial Obligations on Security Clearance Eligibility