Summary
A 59-year-old IT subject matter expert was denied a security clearance under Guideline F (Financial Considerations) due to a history of financial instability and unresolved debts. The applicant had filed for bankruptcy on more than one occasion, including a Chapter 13 bankruptcy in 2002. His most recent Chapter 13 case was dismissed due to a failure to make payments, leaving him responsible for approximately $75,000 in unresolved debt.
Specific allegations included a delinquent home mortgage loan of $57,098 on a $228,656 balance, with the home in foreclosure, and a $651 debt to a collection agency for a cellular account. Disqualifying conditions related to financial issues were raised, while mitigating conditions concerning financial counseling and efforts to resolve debt were considered.
Ultimately, the denial was based on the applicant's failure to live within his means, multiple bankruptcies, and the dismissal of his most recent bankruptcy. Furthermore, the applicant's purchase of three new cars within the last three years following the bankruptcy dismissal demonstrated poor financial judgment, leading to the conclusion that he lacked the necessary reliability and trustworthiness for access to classified information.
Why the Applicant Was Denied
- Applicant failed to live within his means and has filed for bankruptcy on more than one occasion.
- His most recent bankruptcy was dismissed, leaving him responsible for approximately $75,000 of unresolved debt.
- Applicant purchased three new cars within the last three years after the bankruptcy dismissal, indicating poor financial judgment.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
- AG ¶ 19(e)raisedConsistent Spending Beyond One’s Means
- AG ¶ 20(c)rejectedReceived Financial CounselingApplicant attended only two sessions, with insufficient evidence of improvement.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay DebtsInsufficient evidence of addressing unresolved debts and excessive spending behavior.
Key Rule Quoted
“Any doubt concerning personnel being considered for national security eligibility will be resolved in favor of the national security.”
Procedural Posture
- SOR issuedDec 13, 2017
- Answer filedJan 12, 2018
- Hearing heldMay 8, 2018via video teleconference
- Decision dateSep 10, 2018
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations Under Guideline F
- Impact of Multiple Bankruptcies on Security Clearance Eligibility
- Consideration of Excessive Spending Behavior in Financial Assessments for Security Clearance