Summary
A 53-year-old married woman was denied a security clearance under Guideline F (Financial Considerations) due to a long history of financial difficulties. Her financial problems began around 1988 after her then-husband left, leading to struggles in managing bills and supporting her family. She filed for Chapter 7 bankruptcy in 1990, discharging approximately $14,700 in debt, and again in 1999, discharging about $51,000 in unsecured debt.
Currently, the applicant has approximately $21,700 in delinquent debt, including phone bills, utilities, medical expenses, credit card accounts, and income tax bills. While she has consolidated nearly all delinquencies through a law firm, establishing a payment plan of approximately $257 monthly, and is researching additional debts to include, she provided no documentation for these efforts or for other independent payment plans she claims to have arranged.
The denial was based on her 20-year history of financial problems, including two bankruptcies, and the recurrence of issues after the second discharge, indicating a lack of financial control. Despite her stated efforts to organize repayment, the absence of corroborating documentation for these plans outweighed her good-faith attempts.
Why the Applicant Was Denied
- Applicant has a 20-year history of financial problems, including two Chapter 7 bankruptcies.
- Current delinquent debt totals approximately $21,700, with no documentation of repayment history provided.
- Financial problems recurred after the second bankruptcy discharge, indicating a lack of control over finances.
Conditions Referenced
- AG ¶ 19(a)appliedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)appliedHistory of Not Meeting Financial Obligations
- AG ¶ 19(e)appliedConsistent Spending Beyond One’s Means
- AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue Creditors
- AG ¶ 20(c)rejectedReceiving Counseling for the ProblemApplicant did not establish that she was receiving counseling.
- AG ¶ 20(a)rejectedBehavior Happened Long Ago or InfrequentlyFinancial problems recurred after the second bankruptcy.
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 issuedJan 10, 2008
- Answer filedJan 28, 2008
- Hearing held—Applicant represented herself (Pro Se) and did not provide a hearing date.
- Decision dateMay 29, 2008
Cite For
- Evaluation of Financial Considerations Under Guideline F
- Impact of Recurrent Financial Problems on Security Clearance Eligibility
- Importance of Corroborating Evidence in Demonstrating Good-faith Efforts to Resolve Debts