Summary
A 52-year-old defense contractor with a master's degree was denied a security clearance under Guideline F (Financial Considerations) due to multiple delinquent debts and two Chapter 13 bankruptcies. The Statement of Reasons cited eight delinquent debts totaling $30,705, a dismissed Chapter 13 bankruptcy from 2012, and an active Chapter 13 bankruptcy from 2015. The applicant admitted being three months behind on his current bankruptcy plan payments.
Further concerns included the recent and multiple nature of the debts, which raised doubts about his reliability and judgment. While the applicant attributed his financial distress to a contentious divorce, he did not provide documentation for associated legal fees. The judge noted that the applicant had not demonstrated responsible action in addressing his delinquent debts and failed to provide evidence of making payments under his bankruptcy plan, indicating an unstable financial history.
Ultimately, the security clearance was denied because the applicant had numerous unpaid delinquent debts, admitted to being three months behind on his bankruptcy plan, and failed to provide evidence of making required payments. The judge found that the applicant had not mitigated the financial concerns, leading to the denial.
Why the Applicant Was Denied
- Applicant has numerous delinquent debts that remain unpaid.
- He admitted being three months behind in his bankruptcy plan payments.
- The applicant failed to provide evidence of making payments under the bankruptcy plan.
Conditions Referenced
- F.19(a)raisedInability or Unwillingness to Satisfy Debts
- F.19(c)raisedA History of Not Meeting Financial Obligations
- F.20(c)appliedThe Person Has Received or Is Receiving Counseling for the Problem And/or There Are Clear Indications That the Problem Is Being Resolved or Is Under ControlApplicant received financial counseling through the bankruptcy process.
- F.20(d)rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsEven if he was current on his bankruptcy plan payments, such action does not constitute a good-faith effort to pay one’s debts.
Key Rule Quoted
“A person who seeks access to classified information enters into a fiduciary relationship with the Government predicated upon trust and confidence.”
Procedural Posture
- SOR issuedSep 24, 2015
- Answer filedUndated
- Hearing heldMar 31, 2016
- Decision dateOct 11, 2016
Cite For
- Failure to Provide Evidence of Compliance with Bankruptcy Plan Payments Under Guideline F
- Impact of Financial Distress Due to Divorce on Security Clearance Eligibility
- Consideration of the Whole-person Concept in Financial Security Clearance Cases