Summary
A 45-year-old applicant was denied a security clearance under Guideline E (Personal Conduct) due to a history of financial irresponsibility and a lack of meaningful action to resolve outstanding debts. The Statement of Reasons detailed a Chapter 7 bankruptcy filed in December 1996, which listed $94,895.07 in assets and $71,272.51 in liabilities, and was discharged in April 1998.
Following the bankruptcy, the applicant incurred additional debts, including $6,256.00 owed to Capital One Bank from two credit card accounts charged off in September 2001, approximately $1,363.00 owed to Verizon and charged off in 2002, and approximately $4,601.00 owed to Pinnacle, placed for collection in 2005.
The denial was based on the applicant's consistent failure to meet financial obligations after the bankruptcy discharge. The judge found that the financial problems predated the applicant's loss of employment and divorce, contradicting claims of external causation. Furthermore, the applicant's decision to accept advice against establishing a payment plan was viewed negatively, reflecting poor judgment and reliability.
Why the Applicant Was Denied
- Applicant has a history of not meeting financial obligations post-bankruptcy discharge.
- Applicant's financial problems began prior to his loss of employment and divorce, undermining claims of external causation.
- Applicant's acceptance of advice not to set up a payment plan reflects poorly on his judgment and reliability.
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 ControlFinancial problems began prior to loss of employment and divorce.
- 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 ControlInsufficient evidence of meaningful action to resolve debts.
- E2.A6.1.3.6rejectedThe Individual Has Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsNo credible evidence of negotiations with creditors.
Key Rule Quoted
“It is not clearly consistent with the national interest to make or continue a determination of trustworthiness, suitability and eligibility for applicant to hold a sensitive Information Systems Position.”
Procedural Posture
- SOR issuedAug 31, 2006
- Answer filedOct 2, 2006Applicant elected for a written record.
- Hearing held—No hearing; determined on written record.
- Decision dateMay 23, 2007
Cite For
- Denial of Trustworthiness Due to Financial Irresponsibility
- Impact of Prior Financial History on Current Trustworthiness Determinations
- Insufficient Evidence of Rehabilitation Efforts in Financial Matters