Summary
A 62-year-old woman, employed by a Department of Defense contractor, was denied a security clearance for a sensitive position due to significant financial concerns under Guideline F. The applicant had a history of financial irresponsibility, including three Chapter 13 bankruptcy filings between 2001 and 2003, all of which were dismissed for failure to make payments.
Despite some debts being resolved, the applicant still carried over $21,000 in delinquent debt. This included various accounts such as a $1,236 account, a $1,581 debt to an insurance company, a $4,300 delinquent account, a $2,880 delinquent loan, and a $10,000 delinquent student loan, among others. Several cell phone and credit card accounts were also delinquent, placed for collection, or charged off.
The denial was based on the applicant's history of financial irresponsibility, the substantial unresolved delinquent debt with no clear plan for resolution, and a financial situation where monthly expenses exceeded income. The adjudicator determined that the applicant's financial situation was unlikely to stabilize in the near future, leading to the denial of her application.
Why the Applicant Was Denied
- Applicant has a history of financial irresponsibility, including three Chapter 13 bankruptcy filings dismissed for non-payment.
- Over $21,000 in delinquent debt remains unresolved, with no current plan to address it.
- Applicant's monthly expenses exceed her income, indicating a precarious financial situation.
Conditions Referenced
- FC DC ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- FC DC ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- FC DC ¶ 19(e)raisedConsistent Spending Beyond One's Means
- FC MC ¶ 20(a)rejectedBehavior Happened Long Ago or InfrequentlyApplicant's financial problems have been continuous and unresolved since 2001.
- FC MC ¶ 20(b)appliedConditions Beyond ControlSome financial issues stemmed from her husband's death and her unemployment.
- FC MC ¶ 20(c)rejectedReceived Counseling or Indications of ResolutionApplicant has not attended any formal financial counseling.
- FC MC ¶ 20(d)appliedGood-faith Effort to Repay DebtsApplicant attempted to resolve some debts through bankruptcy but failed to follow through.
Key Rule Quoted
“An individual who is financially overextended is at risk of having to engage in illegal acts to generate funds.”
Procedural Posture
- SOR issuedApr 26, 2007
- Answer filedMay 15, 2007Sworn statement submitted.
- Hearing heldAug 30, 2007Hearing conducted as scheduled.
- Decision dateSep 28, 2007
Cite For
- Financial Irresponsibility Leading to Multiple Bankruptcy Filings
- Impact of Unresolved Delinquent Debts on Trustworthiness
- Consideration of Personal Circumstances in Financial Evaluations