Summary
A 48-year-old welder employed by a defense contractor was denied a security clearance due to significant financial considerations under Guideline F. The applicant's financial history included two bankruptcies and outstanding tax liens.
Specifically, the applicant filed a Chapter 13 bankruptcy petition in 1997, which was successfully discharged in 2000. Subsequently, several judgments were entered against him and his wife. He also incurred federal and state income tax liens for 2002 that remain unpaid. In 2005, he filed a Chapter 7 bankruptcy petition, discharging approximately $35,000 in debt.
The denial was based on the applicant's long history of financial problems, including these multiple bankruptcies and unpaid tax debts. He failed to provide any evidence to mitigate the security concerns raised by this financial history and did not respond to the government's file of relevant material, which limited his ability to present a defense.
Why the Applicant Was Denied
- Applicant has a long history of financial problems, including multiple bankruptcies and unpaid tax debts.
- He provided no evidence to mitigate the security concerns raised by his financial history.
- Applicant failed to respond to the government's file of relevant material, which limited his ability to present a defense.
Conditions Referenced
- E2.A6.1.2.1raisedA History of Not Meeting Financial Obligations
- E2.A6.1.2.3raisedInability or Unwillingness to Satisfy Debts
- E2.A6.1.3.3rejectedThe Conditions That Resulted in the Behavior Were Largely Beyond the Person’s ControlApplicant provided no evidence as to the cause of his delinquent debts.
- 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 ControlThere is no evidence of Applicant seeking financial counseling.
- E2.A6.1.3.6rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Bad DebtsApplicant did not provide documentation of efforts to resolve his financial difficulties.
Key Rule Quoted
“No one has a ‘right’ to a security clearance.”
Procedural Posture
- SOR issuedJun 12, 2006
- Answer filedJul 10, 2006Applicant requested a decision without a hearing.
- Hearing held—No hearing was held.
- Decision dateMar 30, 2007
Cite For
- Denial of Security Clearance Due to Financial Considerations Under Guideline F
- Failure to Provide Evidence to Mitigate Financial Issues
- Impact of Multiple Bankruptcies on Security Clearance Eligibility