Summary
A 58-year-old receptionist/administrative assistant with a high school diploma and an associate's degree was denied a security clearance under Guideline F (Financial Considerations) due to a significant history of financial irresponsibility. The Statement of Reasons detailed an extensive history of delinquent indebtedness, including five bankruptcies filed between 1988 and 2013. At the time of the decision, the applicant had twenty-one past due debts totaling approximately $26,000, which included delinquent federal income taxes, four judgments, an eviction for back rent, and other miscellaneous debts.
Despite the applicant's claim of complying with a Chapter 13 bankruptcy plan, the judge found insufficient evidence of fiscal responsibility. The applicant failed to provide proof of payment, receipts, or any documentation to demonstrate resolution of her delinquent debts. While acknowledging unexpected hardships such as divorce, job layoffs, and a death between 2004 and 2013, the judge concluded that these circumstances did not sufficiently mitigate the pattern of unreliability and poor judgment.
The denial was based on the applicant's significant history of financial irresponsibility, including multiple bankruptcies, and the excessive nature of her current debts with no evidence of timely payments. The judge determined there was insufficient evidence to demonstrate that the applicant could manage her financial obligations without court supervision, leading to the conclusion that granting clearance was not consistent with national interest.
Why the Applicant Was Denied
- Applicant has a significant history of financial irresponsibility, including five bankruptcies.
- Applicant's debts remain excessive, totaling approximately $26,000, with no evidence of timely payments.
- The judge found insufficient evidence to demonstrate that the applicant can manage her financial obligations without court supervision.
Conditions Referenced
- 19.(a)raisedInability or Unwillingness to Satisfy Debts
- 19.(c)raisedA History of Not Meeting Financial Obligations
Key Rule Quoted
“Failure or inability 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 information.”
Procedural Posture
- SOR issuedSep 2, 2014
- Answer filedSep 29, 2014Applicant elected to proceed without a hearing.
- Hearing held—Determined on a written record.
- Decision dateOct 2, 2015
Cite For
- Financial Irresponsibility as a Basis for Clearance Denial Under Guideline F
- The Impact of Multiple Bankruptcies on Security Clearance Eligibility
- The Necessity of Demonstrating Fiscal Responsibility for Security Clearance Approval