Summary
A 49-year-old defense contractor was denied a security clearance under Guideline F (Financial Considerations) due to over $800,000 in long-standing financial debt, including two judgments totaling $371,000. Specific allegations included a $6,154 debt from a 1999 auto repossession, a $27,912 debt from a 2002 leased auto repossession, a $7,291 debt from a 2004 auto repossession, and a $69,028 delinquent account referred for collection in April 2006.
Despite filing for Chapter 7 bankruptcy in July 2007, the applicant failed to provide evidence of which debts were discharged. She also did not demonstrate any efforts to resolve her outstanding debts or improve her financial situation.
The judge determined that her financial problems were persistent and unresolved, indicating a lack of good faith effort to mitigate the concerns. Consequently, the applicant was denied eligibility for a trustworthiness position.
Why the Applicant Was Denied
- Applicant failed to provide evidence of which debts were discharged in her bankruptcy filing.
- She did not demonstrate efforts to resolve her debts or improve her financial situation.
- The judge found her financial problems to be persistent and unresolved, indicating a lack of good faith effort.
Conditions Referenced
- AG ¶ 19(a)appliedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)appliedA History of Not Meeting Financial Obligations
- AG ¶ 20(d)rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsApplicant's delay in filing for bankruptcy and lack of evidence of debt resolution did not demonstrate good faith.
Key Rule Quoted
“An applicant must do more than merely show that she relied on a legally available option (such as bankruptcy) in order to claim the benefit of the 'good faith' mitigating condition.”
Procedural Posture
- SOR issuedDec 5, 2006
- Answer filedDec 26, 2006Received on 01/03/2007
- Hearing held—Applicant requested a decision without a hearing.
- Decision dateSep 27, 2007
Cite For
- Failure to Mitigate Financial Concerns Under Guideline F
- Insufficient Evidence of Good Faith Efforts to Resolve Debts
- Impact of Long-standing Financial Issues on Trustworthiness Determinations