Summary
The applicant, a 30-year-old diet clerk with a history of financial difficulties, faced trustworthiness concerns under Guideline F due to numerous delinquent debts totaling approximately $40,000. Despite some evidence of positive character traits and efforts to manage her debts, the judge found that the applicant did not sufficiently mitigate the financial concerns, leading to a denial of her eligibility for a public trust position.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: deficiency of $11,850 after automobile repossession (1.a). deficiency of $5,192 after automobile repossession in 2015, charged off and judgment entered in March 2016 (1.b). student loans placed for collection of $4,628 (1.c). student loans placed for collection of $4,460 (1.d). student loans placed for collection of $3,336 (1.e). judgment for $1,773 for unpaid rent (1.f). judgment for $883 for unpaid rent (1.g). telecommunications bill placed for collection of $1,267 (1.h). telecommunications bill placed for collection of $651 (1.i). delinquent medical bill for $210 (1.j). judgment filed in September 2015 for $5,539 for private school tuition (1.k). community college debt placed for collection of $1,633 (1.p). utility bill placed for collection of $728 (1.q). medical bill placed for collection of $191 (1.r).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c), AG ¶ 19(e). The judge applied mitigating conditions AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d), AG ¶ 20(e). The decision turned on the following: The applicant has numerous delinquent debts totaling approximately $40,000, indicating an inability to satisfy debts; The applicant's financial issues were not fully beyond her control, as some debts were incurred due to her own actions; The applicant failed to demonstrate a good-faith effort to resolve her debts, relying instead on bankruptcy and garnishment.
Why the Applicant Was Denied
- The applicant has numerous delinquent debts totaling approximately $40,000, indicating an inability to satisfy debts.
- The applicant's financial issues were not fully beyond her control, as some debts were incurred due to her own actions.
- The applicant failed to demonstrate a good-faith effort to resolve her debts, relying instead on bankruptcy and garnishment.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 19(e)raisedConsistent Spending Beyond One's Means
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlWhile some conditions were beyond her control, others were due to her own actions.
- AG ¶ 20(c)rejectedReceived Financial CounselingThe debt-management company did not provide the necessary financial counseling.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay DebtsBankruptcy and garnishment do not constitute a good-faith effort.
- AG ¶ 20(e)appliedDispute Legitimacy of Past-due DebtThe applicant successfully disputed two specific 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 issuedAug 30, 2017
- Answer filedOct 4, 2017
- Hearing heldMar 1, 2018
- Decision dateMay 17, 2018
Cite For
- Denial of Eligibility Due to Financial Irresponsibility Under Guideline F
- Evaluation of Mitigating Conditions Related to Financial Difficulties
- Impact of Personal Circumstances on Financial Obligations