Summary
A 36-year-old mail clerk for a defense contractor was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The applicant faced allegations of 15 delinquent debts totaling nearly $15,000, including a $3,484 judgment, a $10,311 account with Drivefin, and various other unpaid bills for medical services, utilities, and telecommunications.
Additionally, the applicant responded "NO" to a question on her January 2006 security clearance application regarding unpaid judgments, despite the existence of a judgment against her. While she acknowledged her financial difficulties and expressed an intent to file for bankruptcy, she failed to provide sufficient evidence to mitigate the disqualifying conditions.
The applicant admitted to all but one of the debts but did not demonstrate efforts to resolve them. Her proposed bankruptcy filing was deemed insufficient to establish a good-faith intent to address her financial obligations. Consequently, her security clearance was denied.
Why the Applicant Was Denied
- The applicant presented insufficient information to explain or mitigate 15 delinquent debts totaling almost $15,000.
- She admitted to all but one of the debts and failed to demonstrate any efforts to resolve them.
- Her proposed solution of filing for bankruptcy was not sufficient to establish a good-faith intent to resolve her debts.
Conditions Referenced
- FC DC ¶ 19(a)appliedInability or Unwillingness to Satisfy Debts
- FC DC ¶ 19(c)appliedA History of Not Meeting Financial Obligations
- PC DC ¶ 16(a)appliedDeliberate Omission, Concealment, or Falsification of Relevant and Material Facts
- FC MC ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlThe applicant did not provide sufficient evidence of responsible actions to address her debts.
- FC MC ¶ 20(d)rejectedGood-faith Effort to Repay Overdue Creditors or Resolve DebtsThe applicant's promise to file for bankruptcy was not considered a good-faith effort.
Key Rule Quoted
“An applicant is not required to be debt free, but is required to manage her finances in such a way as to meet her financial obligations.”
Procedural Posture
- SOR issuedMar 14, 2007
- Answer filedMay 2, 2007
- Hearing held—Applicant elected to have the matter decided on the written record.
- Decision dateAug 31, 2007
Cite For
- Insufficient Evidence to Mitigate Financial Obligations Under Guideline F
- Deliberate Omission of Debts on Security Clearance Application Under Guideline E
- Impact of Financial Irresponsibility on Security Clearance Eligibility