Summary
A 36-year-old Department of Defense contractor was denied a security clearance under Guideline F, Financial Considerations, due to significant financial issues. The applicant's disqualifying conditions included a Chapter 7 bankruptcy, ongoing delinquent debts, and a failure to file state income tax returns for four consecutive years.
Specifically, the applicant filed for Chapter 7 bankruptcy after securing full-time employment, discharging approximately $78,000 in unsecured debt. Following this, he accumulated additional delinquent debt, which resulted in wage garnishments to satisfy creditors. Furthermore, the applicant did not file state income tax returns for four consecutive years.
The judge found that the applicant's financial problems were not mitigated by any evidence of responsible behavior or financial counseling. Consequently, the judge determined that these financial issues raised sufficient doubts about the applicant's reliability and judgment, leading to the denial of the security clearance.
Why the Applicant Was Denied
- Applicant filed for Chapter 7 bankruptcy after obtaining full-time employment, discharging approximately $78,000 of unsecured debt.
- He accumulated additional delinquent debt and had wages garnished to satisfy creditors.
- Applicant failed to file state income tax returns for four consecutive years.
Conditions Referenced
- F.19.araisedInability to Satisfy Debts
- F.19.braisedUnwillingness to Satisfy Debts
- F.19.craisedHistory of Not Meeting Financial Obligations
- F.19.fraisedFailure to File Income Tax Returns
- F.20.arejectedBehavior Happened Long Ago or InfrequentlyApplicant's delinquent debts are numerous and recent.
- F.20.brejectedConditions Largely Beyond ControlApplicant did not demonstrate responsible action despite being fully employed.
- F.20.crejectedReceiving Financial CounselingNo evidence of financial counseling was presented.
- F.20.drejectedGood-faith Effort to Repay DebtsPayments made were after the Government's FORM brief and did not demonstrate a good-faith effort.
- F.20.grejectedArrangements with Tax AuthorityNo evidence of filing state income tax returns or arrangements with tax authorities.
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 14, 2017
- Answer filedDec 5, 2017Applicant admitted all allegations.
- Hearing held—Applicant requested decision on the written record.
- Decision dateSep 20, 2018
Cite For
- Denial of Security Clearance Due to Unresolved Financial Issues Under Guideline F
- Failure to Demonstrate Responsible Financial Behavior Despite Full Employment
- Impact of Failure to File Tax Returns on Security Clearance Eligibility