Summary
A 46-year-old project administrator for a defense contractor was denied a security clearance under Guideline F (Financial Considerations) due to a history of bankruptcy filings and unresolved debts. The Statement of Reasons detailed four bankruptcy petitions: a Chapter 13 filing in September 2009, dismissed in October 2011; a Chapter 7 filing in September 2012, which discharged approximately $20,000 in marital, post-divorce, and medical debt; and two subsequent Chapter 13 filings in August 2013 and November 2013, both dismissed by October 2013 and June 2014, respectively, with the latter due to an inability to maintain payments.
Disqualifying conditions F1, F2, F3, and F4 were raised, while mitigating conditions F2, F3, and F4 were applied. However, the applicant's repeated Chapter 13 filings, with at least two dismissals for non-payment, were significant.
The denial was based on the applicant's failure to provide sufficient documentation confirming the resolution of all debts claimed in her Chapter 7 bankruptcy. The decision concluded that her financial difficulties were recent and multiple, indicating they were unlikely to recur, and she did not present a credible plan for financial stability.
Why the Applicant Was Denied
- The applicant filed for Chapter 13 bankruptcy protection four times, with at least two petitions dismissed due to failure to make payments.
- The applicant did not provide sufficient documentation to confirm the resolution of all debts claimed to be included in her Chapter 7 bankruptcy petition.
- The applicant's financial difficulties were recent and multiple, indicating they were unlikely to recur.
Conditions Referenced
- F1raisedFinancial Considerations
- F2raisedFinancial Considerations
- F3raisedFinancial Considerations
- F4raisedFinancial Considerations
- F2rejectedFinancial ConsiderationsThe applicant did not demonstrate that her ongoing financial problems were due to circumstances beyond her control.
- F3rejectedFinancial ConsiderationsThe applicant did not provide evidence of a credible and realistic plan to resolve her financial problems.
- F4rejectedFinancial ConsiderationsThe applicant's efforts to address her debts were insufficient and lacked supporting documentation.
Key Rule Quoted
“The Government has a compelling interest in ensuring each applicant possesses the requisite judgement, reliability, and trustworthiness of those who must protect national interests as their own.”
Procedural Posture
- SOR issuedJun 20, 2015
- Answer filed—Applicant requested a decision without hearing.
- Hearing heldMay 18, 2016
- Decision dateMar 27, 2017
Cite For
- Denial of Security Clearance Due to Multiple Bankruptcy Filings Under Guideline F
- Insufficient Documentation of Financial Stability Efforts
- Ongoing Financial Issues Not Resolved Despite Previous Bankruptcy Discharges