Summary
A 38-year-old senior field representative for a medical contractor was denied a security clearance due to financial considerations under Guideline F. The applicant had a history of financial irresponsibility, with over $40,000 in delinquent debts accumulated between September 1996 and January 2006. These included an unpaid bounced check from 1996, a delinquent automobile loan, five medical accounts, four utility accounts, and six additional bounced checks.
The applicant reported financial difficulties on a November 2003 application, acknowledging nearly $11,000 in debts she intended to pay. She attributed some issues to her husband's injuries, though the timing was unclear. Despite a personal financial statement from the same period showing a positive cash flow of over $2,400 per month, and substantial positive cash flow in June 2005, no delinquent accounts were satisfied. In December 2006, she and her husband filed a Chapter 13 Wage Earner Petition, but provided no information on the extent of relief or her ability to meet payments.
The judge found the applicant's financial problems to be ongoing and not isolated, with no evidence of credit counseling or repayment efforts. Her financial difficulties also included consequences of past choices, such as two years of voluntary unemployment during which five accounts became delinquent. The government established a case for disqualification by demonstrating over 10 years of financial irresponsibility, and the applicant did not mitigate these concerns, leading to the denial of her trustworthiness determination.
Why the Applicant Was Denied
- The applicant admitted to over $40,000 in delinquent debt accumulated over a decade.
- The applicant's financial problems were ongoing and not isolated incidents.
- There was no evidence of credit counseling or efforts to resolve her debts.
Conditions Referenced
- E2.A6.1.2.1raisedA History of Not Meeting Financial Obligations
- E2.A6.1.2.3raisedInability or Unwillingness to Satisfy Debts
- E2.A6.1.3.1rejectedThe Behavior Was Not RecentThe judge found the financial issues ongoing.
- E2.A6.1.3.2rejectedIt Was an Isolated IncidentThe judge found multiple debts over a long period.
- E2.A6.1.3.3rejectedThe Conditions That Resulted in the Behavior Were Largely Beyond the Person’s ControlThe judge noted some circumstances but did not find them significant.
- E2.A6.1.3.4rejectedThe Person Has Received or Is Receiving Counseling for the Problem and There Are Clear Indications That the Problem Is Being Resolved or Is Under ControlNo evidence of credit counseling was presented.
- E2.A6.1.3.6rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant did not demonstrate any good-faith efforts.
Key Rule Quoted
“Trustworthiness determinations resolve whether it is clearly consistent with the national interest to grant or continue an Applicant’s request for access to sensitive information.”
Procedural Posture
- SOR issuedAug 31, 2006
- Answer filedOct 13, 2006
- Hearing held—Decision made on the record.
- Decision dateMar 30, 2007
Cite For
- Financial Irresponsibility as a Basis for Denial Under Guideline F
- Lack of Mitigating Factors in Ongoing Financial Issues
- Importance of Demonstrating Good-faith Efforts to Resolve Debts