Summary
A 72-year-old investigator was denied a security clearance under Guideline F (Financial Considerations) due to significant delinquent debts totaling approximately $100,000. The Statement of Reasons detailed several financial issues, including a dismissed Chapter 13 bankruptcy from September 2011, and an acknowledged bank debt of $201,538 related to a motor home.
Additional allegations included a $3,146 charged-off debt for furniture, a $23,000 charged-off bank debt, a $21,900 delinquent bank debt, and a $523 debt on a timeshare. Despite a monthly income of $11,000, the applicant failed to provide sufficient evidence of efforts to resolve these debts.
The denial was based on the applicant's failure to provide adequate mitigating information, establish payment plans, or take reasonable actions to resolve her delinquent debts following the dismissal of her bankruptcy. This led to the conclusion that her financial considerations posed a security concern.
Why the Applicant Was Denied
- The applicant did not provide sufficient mitigating information regarding her significant debts.
- Despite a high monthly income, the applicant failed to establish payment plans for her debts.
- The applicant's bankruptcy was dismissed, and she did not take reasonable actions to resolve her delinquent debts.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlThe applicant did not demonstrate that her financial issues were adequately beyond her control.
- AG ¶ 20(c)appliedThe Person Has Received or Is Receiving Counseling for the ProblemThe applicant received financial counseling.
- AG ¶ 20(d)rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant did not provide sufficient evidence of good-faith efforts to resolve her debts.
- AG ¶ 20(e)rejectedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due DebtThe applicant did not provide adequate documentation to dispute the debts.
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the adjudicative guidelines.”
Procedural Posture
- SOR issuedSep 17, 2015
- Answer filedOct 20, 2015
- Hearing heldJun 10, 2016
- Decision dateNov 23, 2016
Cite For
- Denial of Security Clearance Due to Significant Financial Issues Under Guideline F
- Insufficient Evidence of Debt Resolution Despite High Income
- Impact of Dismissed Bankruptcy on Security Clearance Eligibility