Summary
A 37-year-old defense contractor was denied a security clearance under Guideline F, Financial Considerations, due to significant financial issues. The Statement of Reasons cited his filing for Chapter 13 bankruptcy in July 2007, which involved over $49,000 in debt. He subsequently made only the first two required payments toward this bankruptcy.
The denial was based on the applicant's failure to comply with the terms of his Chapter 13 bankruptcy after only two months. Furthermore, he did not provide any evidence of ongoing financial counseling or rehabilitation efforts.
The adjudicator determined that the applicant's history of financial irresponsibility raised substantial questions regarding his reliability and trustworthiness, leading to the denial of his security clearance. Disqualifying conditions AG ¶ 19(a) and AG ¶ 19(c) were raised, while mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), and AG ¶ 20(d) were considered but ultimately insufficient to overcome the concerns.
Why the Applicant Was Denied
- The applicant failed to comply with the terms of his Chapter 13 bankruptcy after only two months.
- He provided no evidence of ongoing financial counseling or rehabilitation.
- The applicant's history of financial irresponsibility raised substantial questions about his reliability and trustworthiness.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was Infrequent, or Unlikely to RecurThe applicant's financial issues have been ongoing since at least 2000.
- AG ¶ 20(b)rejectedConditions Beyond the Person's ControlThe applicant provided no evidence that his debts arose from circumstances beyond his control.
- AG ¶ 20(c)rejectedReceived or Receiving CounselingThe only documented counseling was required by bankruptcy law, with no evidence of ongoing support.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay DebtsThe applicant failed to make required bankruptcy payments after two months.
Key Rule Quoted
“Failure or inability 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 information.”
Procedural Posture
- SOR issuedMar 24, 2008
- Answer filedApr 24, 2008
- Hearing held—Applicant requested a decision on the written record.
- Decision dateSep 5, 2008
Cite For
- Denial of Security Clearance Due to Financial Irresponsibility Under Guideline F
- Failure to Demonstrate Rehabilitation or Responsible Financial Behavior
- Impact of Ongoing Financial Issues on Trustworthiness and Reliability