Summary
The applicant, a 53-year-old claims processor, faced financial trustworthiness concerns under Guideline F due to numerous delinquent debts, including federal and state tax liabilities, and two dismissed Chapter 13 bankruptcies. The judge denied the application, finding insufficient evidence of a good-faith effort to resolve the debts and a lack of financial responsibility.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: state tax liens for the same state of $2,968 for tax year 2009 (1.a). state tax liens for the same state of $2,506 for tax year 2014 (1.b). state tax liens for the same state of $2,021 for tax year 2012 (1.c). medical accounts in collection for $92 (1.d). medical accounts in collection for $111 (1.e). student loans in collection for $4,885 (1.f). medical accounts in collection for $133 (1.g). medical accounts in collection for $131 (1.h). state tax liens for the same state of $968 for tax year 2014 (1.i). state tax liens for the same state of $2,356 for tax year 2011 (1.j). student loans in collection for $4,039 (1.k). medical accounts in collection for $404 (1.l). a credit card debt charged off for $164 (1.m). student loans in collection for $4,321 (1.n). student loans in collection for $3,928 (1.o). Applicant filed a Chapter 13 bankruptcy in August 2013 that was dismissed in November 2014 (1.p). Applicant filed another Chapter 13 bankruptcy that was filed in May 2008 and dismissed in March 2009 (1.q). Applicant is indebted to the Federal government for delinquent taxes of approximately $19,355.00 for tax years 2009 through 2015 (1.r).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(b), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d). The decision turned on the following: Applicant did not present sufficient credible information to mitigate financial trustworthiness concerns; Numerous and recent delinquent debts were established, including federal tax liabilities of approximately $19,355; Applicant failed to provide adequate documentation of payments or a reasonable plan to resolve her debts.
Why the Applicant Was Denied
- Applicant did not present sufficient credible information to mitigate financial trustworthiness concerns.
- Numerous and recent delinquent debts were established, including federal tax liabilities of approximately $19,355.
- Applicant failed to provide adequate documentation of payments or a reasonable plan to resolve her debts.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(b)raisedUnwillingness to Satisfy Debts Regardless of the Ability to Do So
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was Infrequent, or Occurred Under Circumstances Unlikely to RecurDebts are numerous and recent.
- AG ¶ 20(b)rejectedConditions That Resulted in Financial Problems Were Largely Beyond the Person's ControlApplicant's financial issues were due to poor budgeting and overextension.
- AG ¶ 20(c)rejectedReceived or Receiving Counseling for the ProblemCounseling from a pastor does not demonstrate effective financial management.
- AG ¶ 20(d)rejectedInitiated and Adhering to a Good-faith Effort to Repay Overdue CreditorsInsufficient evidence of a systematic plan to resolve debts.
Key Rule Quoted
“A person who seeks access to sensitive information enters into a fiduciary relationship with the Government predicated upon trust and confidence.”
Procedural Posture
- SOR issuedApr 28, 2017
- Answer filedMay 16, 2017
- Hearing held—Applicant requested a decision on the record.
- Decision dateMar 13, 2018
Cite For
- Insufficient Evidence to Mitigate Financial Trustworthiness Concerns Under Guideline F
- Impact of Multiple Dismissed Bankruptcies on Trustworthiness
- Importance of Demonstrating a Good-faith Effort to Resolve Debts in Security Clearance Cases.