Summary
A 43-year-old administrative assistant was denied a security clearance under Guideline F (Financial Considerations) due to a history of financial irresponsibility. The applicant had filed for Chapter 7 bankruptcy in November 1997, receiving a discharge in May 1998. Since then, she accumulated 20 additional debts totaling approximately $58,040.
These debts included two federal tax liens totaling $23,571, for which she established a $200 monthly payment plan with the IRS in 2002 and is currently up-to-date. She also had two state tax liens totaling $4,808, which remained unpaid, though she expressed an intent to pay them when possible. Other debts included a $75 past-due car loan payment, which has since been resolved, and a $1,859 debt for unemployment benefit overpayment. The remaining 14 debts totaled approximately $23,727.
The denial was based on the applicant's long-standing failure to meet financial obligations, dating back to 1997, and the ongoing nature of her financial difficulties. The decision noted minimal evidence of efforts to resolve her debts or improve her financial situation, and her testimony regarding mitigating factors or a track record of financial responsibility was uncorroborated.
Why the Applicant Was Denied
- Applicant has a history of failing to meet financial obligations dating back to 1997, including 20 delinquent debts totaling approximately $58,040.
- Applicant's financial difficulties are ongoing, with minimal evidence of efforts to resolve her debts or improve her financial situation.
- The applicant's uncorroborated testimony did not establish mitigating factors or a track record of financial responsibility.
Conditions Referenced
- FC DC ¶ 19(a)appliedInability or Unwillingness to Satisfy Debts
- FC DC ¶ 19(c)appliedA History of Not Meeting Financial Obligations
- FC MC ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlApplicant's financial difficulties were not sufficiently documented as being beyond her control.
- FC MC ¶ 20(c)rejectedThe Person Has Received or Is Receiving Counseling for the ProblemPast financial counseling did not yield tangible results or evidence of responsible debt management.
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedFeb 29, 2008
- Answer filedMar 28, 2008
- Hearing heldJul 17, 2008
- Decision dateAug 26, 2008
Cite For
- Financial Mismanagement Over an Extended Period Under Guideline F
- Insufficient Evidence of Financial Responsibility Leading to Denial of Clearance
- Impact of Ongoing Financial Difficulties on Security Clearance Eligibility