Summary
A 46-year-old applicant seeking a security clearance for a defense contractor position was denied due to financial considerations under Guideline F. The Statement of Reasons cited four bankruptcy filings and six delinquent debts totaling approximately $6,721. Additionally, the applicant had a disputed debt of $89,200.
Specific concerns included the dismissal of a 2015 Chapter 13 bankruptcy for failure to make payments, and a subsequent Chapter 13 petition from August 2016 that was pending dismissal for lack of required documentation. The applicant disputed ever filing a Chapter 11 bankruptcy and the amount owed on the $89,200 debt. However, no proof of payment was provided for any listed debts, and the applicant's only efforts to resolve these issues were through unsuccessful bankruptcy proceedings.
The judge found that the applicant's debts were recent and remained unresolved, with insufficient evidence to demonstrate that the financial problems were unlikely to recur. The applicant failed to provide documentation addressing other listed debts or show a track record of financial stability, leading to the denial of the security clearance.
Why the Applicant Was Denied
- Applicant has unresolved debts totaling approximately $6,721, including multiple bankruptcy filings since 2012.
- The applicant's 2015 Chapter 13 bankruptcy was dismissed for failure to make payments, and no documentation was provided to show efforts to resolve debts.
- The applicant did not demonstrate a track record of financial stability or responsible action to address her financial issues.
Conditions Referenced
- F.1.araisedInability to Satisfy Debts
- F.1.braisedUnwillingness to Satisfy Debts Regardless of the Ability to Do So
- F.1.craisedA History of Not Meeting Financial Obligations
- F.2.arejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
- F.2.brejectedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
- F.2.cappliedThe Individual Has Received or Is Receiving Financial Counseling
- F.2.drejectedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors
- F.2.eappliedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due Debt
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedJun 16, 2016
- Answer filedJul 18, 2016Applicant elected to have the case decided on the written record.
- Hearing held—No hearing; decision made on the written record.
- Decision dateAug 31, 2017
Cite For
- Failure to Mitigate Financial Considerations Under Guideline F
- Impact of Multiple Bankruptcy Filings on Security Clearance Eligibility
- Importance of Demonstrating Financial Stability for Security Clearance Applicants