Summary
The applicant, a 52-year-old woman with a long-term employment history, faced security concerns under Guideline F due to multiple delinquent debts totaling $66,821. Despite claiming financial hardship following her brother's death, she failed to provide sufficient evidence to mitigate the financial trustworthiness concerns, resulting in a denial of her application for a public trust position.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: SOR ¶ 1.a alleged that Applicant was delinquent on judgment filed in 2013, in the amount of $1,465 (1.a). SOR ¶ 1.b alleged that Applicant was delinquent on judgment entered in 2009, in the amount of $934 (1.b). SOR ¶ 1.c alleged that Applicant was delinquent on a collection account in the amount of $260 (1.c). SOR ¶ 1.d alleged that Applicant was delinquent on a charged-off account in the amount of $411 (1.d). SOR ¶ 1.e alleged that Applicant was delinquent on a charged-off account in the amount of $501 (1.e). SOR ¶ 1.f alleged that Applicant was delinquent on a charged-off account in the amount of $526 (1.f). SOR ¶ 1.g alleged that Applicant was delinquent on a past-due second mortgage account in the amount of $62,048, with a total balance of $87,707 owing (1.g). SOR ¶ 1.h alleged that Applicant was delinquent on a collection account in the amount of $105 (1.h). SOR ¶ 1.i alleged that Applicant was delinquent on a collection account in the amount of $571 (1.i).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The decision turned on the following: Applicant failed to provide evidence of resolving delinquent debts; Applicant did not demonstrate a good-faith effort to repay creditors; The applicant's explanations for her financial issues were deemed insufficient to mitigate trustworthiness concerns.
Why the Applicant Was Denied
- Applicant failed to provide evidence of resolving delinquent debts.
- Applicant did not demonstrate a good-faith effort to repay creditors.
- The applicant's explanations for her financial issues were deemed insufficient to mitigate trustworthiness concerns.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
Key Rule Quoted
“Failure to live within one's means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual's reliability, trustworthiness, and ability to protect classified or sensitive information.”
Procedural Posture
- SOR issuedSep 27, 2016
- Answer filedOct 24, 2016Applicant elected for a written record decision.
- Decision dateOct 18, 2017
Cite For
- Failure to Mitigate Financial Trustworthiness Concerns Under Guideline F
- Insufficient Evidence of Good-faith Efforts to Resolve Debts
- Impact of Financial Distress on Reliability and Trustworthiness Assessments