Summary
A 53-year-old contractor was denied a security clearance under Guideline F (Financial Considerations) due to a history of significant financial difficulties. The Statement of Reasons detailed two dismissed Chapter 13 bankruptcies, filed in May 2014 and June 2015, claiming liabilities of approximately $426,073 and $349,528, respectively. Both bankruptcies were dismissed due to the applicant's failure to file required paperwork or make payments.
Further financial concerns included a 2014 federal tax lien for $101,027, a 2016 home foreclosure, and a $9,258 charged-off home equity loan deficiency. Other unresolved debts included a $7,199 charged-off credit card account, a $1,641 collection account for a furnace repair, and multiple unpaid medical accounts totaling approximately $20,600, for which the applicant cited a lack of health insurance. Additionally, the applicant had unpaid parking tickets totaling about $700, though five tickets for $275 were paid. An alleged $2,112 past-due account was denied by the applicant.
Despite acknowledging his financial hardships and providing character references, the applicant failed to present sufficient evidence to mitigate the financial security concerns. The decision highlighted the dismissed bankruptcies and approximately $42,000 in unresolved delinquent debts, including the substantial tax lien, as primary reasons for the denial.
Why the Applicant Was Denied
- The applicant did not present sufficient evidence to mitigate the financial security concerns.
- The applicant's two Chapter 13 bankruptcy filings were dismissed due to failure to make required payments and missed deadlines.
- The applicant has unresolved delinquent debts totaling approximately $42,000, including a significant tax lien and other financial obligations.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 19(f)raisedFailure to Pay Annual Federal Income Tax as Required
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to RecurThe applicant's financial issues are ongoing and unresolved.
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlWhile unemployment was a factor, the applicant did not act responsibly to address the resulting debts.
- AG ¶ 20(c)rejectedReceived Financial Counseling From a Legitimate SourceThe applicant's financial counseling was insufficient to demonstrate control over his debts.
- AG ¶ 20(d)rejectedInitiated and Is Adhering to a Good-faith Effort to Repay Overdue CreditorsThe applicant has not shown a track record of payments or good-faith efforts to resolve debts.
- AG ¶ 20(g)rejectedMade Arrangements with the Appropriate Tax AuthorityThe applicant has not established an approved payment plan with the IRS.
Key Rule Quoted
“A person who seeks access to classified information enters into a fiduciary relationship with the Government predicated upon trust and confidence.”
Procedural Posture
- SOR issuedApr 27, 2017
- Answer filed—Timely response to SOR.
- Hearing heldMay 17, 2018Hearing was postponed once before the final date.
- Decision dateJul 26, 2018
Cite For
- Insufficient Evidence to Mitigate Financial Concerns Under Guideline F
- Impact of Unresolved Debts on Security Clearance Eligibility
- Importance of Demonstrating Good-faith Efforts in Financial Matters