Summary
A 47-year-old conference planner employed by a defense contractor was denied a security clearance due to significant financial concerns under Guideline F. The applicant's financial history included a Chapter 7 bankruptcy filed in June 2012 and discharged in August 2013, along with numerous delinquent debts totaling approximately $33,000.
Specific allegations included a 2015 tax lien for $3,537, judgments for medical debts of $103 and $308 in 2015, and a December 2014 judgment for unpaid rent of $1,508. The applicant also had two vehicle repossessions in March and August 2016, resulting in deficiencies of $6,929 and $14,251, respectively. Additionally, there were multiple collection accounts for cellphone, medical, credit card, telecommunications, and utility bills, some of which were included in the bankruptcy.
The denial was based on the applicant's history of financial irresponsibility and a failure to provide sufficient evidence of efforts to resolve the debts or demonstrate financial stability. The judge concluded that the financial problems were not under control and were recent, indicating a likelihood of recurrence, thus failing to meet the mitigation requirements.
Why the Applicant Was Denied
- The applicant has a history of financial irresponsibility, including a Chapter 7 bankruptcy and numerous unresolved delinquent debts.
- The applicant did not provide sufficient evidence of efforts to resolve her debts or to demonstrate financial stability.
- The applicant's financial problems were not under control and were recent, indicating a likelihood of recurrence.
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 Infrequent, or Unlikely to Recur
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's Control
- AG ¶ 20(c)rejectedReceived Financial Counseling From a Legitimate Source
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue Creditors
- AG ¶ 20(e)rejectedReasonable Basis to Dispute the Legitimacy of the Past-due Debt
Key Rule Quoted
“Failure to live within one's means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual's reliability, trustworthiness, and ability to protect classified or sensitive information.”
Procedural Posture
- SOR issuedOct 13, 2017
- Answer filedNov 10, 2017Requested decision on the record without a hearing.
- Hearing held—No hearing held; decision made on the record.
- Decision dateFeb 14, 2018
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations Under Guideline F
- Insufficient Evidence of Financial Stability and Responsibility
- Impact of Financial Irresponsibility on Security Clearance Eligibility