Summary
A 58-year-old weapons handler for a defense contractor was denied a security clearance due to financial considerations under Guideline F. The applicant's financial history included four Chapter 13 bankruptcy petitions filed between September 2001 and January 2004, all of which were dismissed for failure to make required payments. Additionally, the Statement of Reasons (SOR) alleged 15 delinquent debts totaling approximately $31,000.
Specific allegations included a federal tax lien, which the applicant testified was satisfied by seized tax refunds, and medical bills that he claimed to have paid but provided no documentation for. He also stated that a debt for overpayment of wages was satisfied through final pay withholding, again without documentation. While a deficiency from a car repossession was being collected via wage garnishment, the applicant denied a state tax lien and an insurance bill without providing evidence of resolution or dispute.
Despite some evidence of financial hardship, the applicant failed to demonstrate responsible conduct or a good-faith effort to resolve his debts. The decision highlighted his history of dismissed bankruptcies and numerous delinquent debts dating back to 2000, ultimately leading to the denial of his security clearance.
Why the Applicant Was Denied
- The applicant has a history of multiple bankruptcies, all dismissed for failure to make required payments.
- The applicant has numerous delinquent debts totaling about $31,000, which he has been unable to pay since 2000.
- The applicant did not provide sufficient evidence of responsible conduct or good-faith efforts to resolve his financial issues.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to RecurThe applicant's delinquent debts are numerous, ongoing, and not the result of circumstances making them unlikely to recur.
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlWhile some circumstances were beyond the applicant's control, he did not act responsibly to resolve his debts.
- AG ¶ 20(c)rejectedReceived Counseling for the Problem And/or Clear Indications That the Problem Is Being Resolved or Is Under ControlThere is no evidence that the applicant has sought or received counseling, and his financial situation is not under control.
- AG ¶ 20(d)rejectedInitiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant did not provide documentary evidence to support his claims of resolving debts.
- AG ¶ 20(e)appliedReasonable Basis to Dispute the Legitimacy of the Past-due DebtThe applicant provided evidence that the federal tax lien was satisfied, but did not establish this for other debts.
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the AG.”
Procedural Posture
- SOR issuedApr 12, 2010
- Answer filedJun 14, 2010
- Hearing heldAug 31, 2010
- Decision dateOct 1, 2010
Cite For
- Denial of Security Clearance Due to Financial Irresponsibility Under Guideline F
- Failure to Demonstrate Good-faith Efforts to Resolve Debts
- Impact of Multiple Bankruptcies on Security Clearance Eligibility