Summary
The applicant, a 44-year-old federal contractor, faced security clearance denial under Guideline F due to unresolved financial issues, including a history of bankruptcy and multiple delinquent debts totaling approximately $48,867. The judge found that the applicant failed to demonstrate responsible financial behavior or provide evidence of financial counseling, leading to doubts about her reliability and judgment.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant filed Chapter 13 Bankruptcy in February 2014, which was voluntarily dismissed by her in June 2014 (1.a). She is delinquent in the amount of about $700 for a student loan that has a balance of approximately $65,000 (1.b). Her car loan account was charged off in the approximate amount of $24,463 (1.c). She owes approximately $4,368 for another vehicle that has been repossessed (1.d). She owes about $2,000 to a collection agency for two different accounts placed for collection (1.e). She owes about $2,000 to a collection agency for two different accounts placed for collection (1.f). She owes about $322 for another account referred for collection (1.g). An unpaid judgment in the amount of approximately $6,000 was entered against Applicant in 2016 (1.h). She has a tuition account referred for collection in the approximate amount of $2,500 (1.i). She has a delinquent account with a balance of about $1,500 (1.j). The charged-off accounts alleged in SOR ¶¶ 1.k and 1.l have not been resolved (1.k). The charged-off accounts alleged in SOR ¶¶ 1.k and 1.l have not been resolved (1.l). She has delinquent property taxes owed to the state in the approximate amount of $5,500 (1.m).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(b), AG ¶ 19(c). The decision turned on the following: Applicant has a history of unresolved financial obligations, including a Chapter 13 bankruptcy that was voluntarily dismissed; The majority of debts alleged in the SOR remain unpaid, indicating a lack of responsible financial management; Applicant did not provide evidence of financial counseling or a good-faith effort to resolve her debts.
Why the Applicant Was Denied
- Applicant has a history of unresolved financial obligations, including a Chapter 13 bankruptcy that was voluntarily dismissed.
- The majority of debts alleged in the SOR remain unpaid, indicating a lack of responsible financial management.
- Applicant did not provide evidence of financial counseling or a good-faith effort to resolve her debts.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(b)raisedUnwillingness to Satisfy Debts
- AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
Key Rule Quoted
“Any doubt concerning personnel being considered for national security eligibility will be resolved in favor of the national security.”
Procedural Posture
- SOR issuedNov 6, 2017
- Answer filedMar 13, 2018Requested decision based on written record.
- Hearing held—No hearing; decision based on written record.
- Decision dateJun 7, 2018
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations Under Guideline F
- Failure to Demonstrate Responsible Financial Management
- Lack of Evidence for Financial Counseling or Repayment Plans