Summary
The applicant, a 46-year-old technical writer and retired Navy veteran, faced security clearance denial under Guideline F due to financial considerations, including two bankruptcies and a history of delinquent debts. The judge found that the applicant's financial irresponsibility and lack of a solid plan to address her debts raised significant concerns about her reliability and trustworthiness.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant filed a Chapter 13 bankruptcy petition in September 2014. She testified that, although she was employed, she was about six months behind on her debt payments. Her petition listed secured debts of about $277,895 (the first mortgage on her home) and $583 (delinquent condominium fees); an unsecured priority debt of $144 for personal property taxes; and $22,625 in unsecured nonpriority debts. She did not make the payments to the bankruptcy trustee, and the bankruptcy petition was dismissed without prejudice in February 2017 (1.a). Applicant refiled her bankruptcy petition in March 2017, and it was pending as of the date of the hearing. This petition lists a balance of $268,219 on the first mortgage on her home; a judgment for $3,176 in unpaid condominium fees; six credit-card accounts totaling $13,374; a personal loan for $1,109; another personal loan for $6,127; a student loan for $1,278; and a line of credit for $487 (1.b).
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 has a history of two bankruptcies and numerous delinquent debts; Applicant failed to demonstrate a responsible approach to her financial obligations, including not making payments under her bankruptcy plan; The judge found that the applicant's financial problems were not under control and lacked evidence of responsible conduct toward creditors.
Why the Applicant Was Denied
- Applicant has a history of two bankruptcies and numerous delinquent debts.
- Applicant failed to demonstrate a responsible approach to her financial obligations, including not making payments under her bankruptcy plan.
- The judge found that the applicant's financial problems were not under control and lacked evidence of responsible conduct toward creditors.
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 so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
- AG ¶ 20(c)rejectedReceived or Is Receiving Financial Counseling
- AG ¶ 20(d)rejectedInitiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the adjudicative guidelines.”
Procedural Posture
- SOR issuedSep 6, 2017
- Answer filedSep 21, 2017
- Hearing heldFeb 27, 2018
- Decision date—
Cite For
- Denial of Security Clearance Due to Financial Irresponsibility Under Guideline F
- Impact of Multiple Bankruptcies on Security Clearance Eligibility
- Evaluation of Financial Conduct in the Context of the Whole-person Concept