Summary
A 51-year-old defense contractor was denied a security clearance under Guideline F, Financial Considerations, due to unresolved financial issues. The Statement of Reasons detailed multiple outstanding debts, including two student loans in collection totaling $27,691 and $18,225, respectively. Additionally, the applicant owed four medical debts in collection for $902, $706, $326, and $299, along with a consumer credit debt in collection for $201. These issues were raised as disqualifying conditions under Adjudicative Guidelines paragraphs 19(a), 19(b), and 19(c).
The applicant had previously filed for Chapter 7 bankruptcy, which was discharged in November 2014. However, new collection debts were incurred after this discharge. While mitigating conditions under Adjudicative Guidelines paragraphs 20(b) and 20(d) were considered, they were not sufficient to overcome the concerns.
The denial was based on the applicant's failure to demonstrate a good-faith effort to resolve her debts and the accumulation of new collection debts post-bankruptcy. The judge concluded that these financial issues raised concerns regarding the applicant's reliability and judgment, leading to the denial of her security clearance.
Why the Applicant Was Denied
- Applicant failed to demonstrate a good-faith effort to resolve her debts.
- Applicant incurred new collection debts after receiving a Chapter 7 bankruptcy discharge.
- Applicant's financial issues raised concerns about her reliability and judgment.
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(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlApplicant did not provide documentation to support claims that debts were her ex-husband's responsibility.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsApplicant did not demonstrate sufficient progress in addressing her financial delinquencies.
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 issuedMay 18, 2017
- Answer filedJun 29, 2017Requested decision on the written record.
- Hearing held—No hearing; decision made on the written record.
- Decision dateMar 30, 2018
Cite For
- Denial of Security Clearance Due to Unresolved Financial Delinquencies Under Guideline F
- Failure to Demonstrate Good-faith Efforts to Resolve Debts
- Impact of Financial Issues on Reliability and Judgment in Security Clearance Determinations