Summary
A 46-year-old senior janitor maintenance employee was denied a security clearance under Guideline F (Financial Considerations) due to significant financial issues. The applicant had a history of bankruptcy, filing for Chapter 7 in 1997, with approximately $25,000 in debts discharged in March 1998. This bankruptcy stemmed from losing track of bills, using credit cards for everyday expenses and gifts, and only making minimum payments, leading to delinquency due to high interest rates.
Beyond the bankruptcy, the applicant accumulated multiple delinquent debts totaling approximately $49,267. These included a $32,529 line of credit loan from HFC, charged off in December 2005; a $13,137 loan from Washington Mutual, charged off in May 2006; and a $3,373 line of credit account with Equity One, charged off in August 2006. Additionally, a $228 debt was placed for collection in August 2007.
The denial was based on the applicant's admission of these multiple delinquent debts, which he failed to address or pay. The judge determined that this financial irresponsibility demonstrated a lack of judgment and self-control, raising concerns about his reliability and trustworthiness. The applicant did not provide evidence of a good-faith effort to repay his debts or resolve his financial issues.
Why the Applicant Was Denied
- The applicant admitted to multiple delinquent debts totaling approximately $49,267, which he failed to address or pay.
- The applicant's financial irresponsibility indicated a lack of judgment and self-control, raising concerns about his reliability and trustworthiness.
- The applicant did not present evidence of a good-faith effort to repay his debts or resolve his financial issues.
Conditions Referenced
- FC DC ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- FC DC ¶ 19(b)raisedIndebtedness Caused by Frivolous or Irresponsible Spending and the Absence of Any Evidence of Willingness or Intent to Pay the Debt or Establish a Realistic Plan to Pay the Debt
- FC DC ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- FC MC ¶ 20(a)rejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur and Does Not Cast Doubt on the Individual’s Current Reliability, Trustworthiness, or Good JudgmentThe applicant's debts are current and not infrequent, casting doubt on his reliability.
- FC MC ¶ 20(b)rejectedThe Conditions That Resulted in the Financial Problems Were Largely Beyond the Person’s Control and the Individual Acted Responsibly Under the CircumstancesThe applicant's financial issues were due to voluntary decisions and he did not act responsibly.
- FC MC ¶ 20(d)rejectedThe Individual Has Initiated a Good-faith Effort to Repay the Overdue Creditors or Otherwise Resolve DebtsThe applicant did not present evidence of a plan to pay debts or any action taken to resolve them.
Key Rule Quoted
“A person who seeks access to classified information enters into a fiduciary relationship with the Government predicated upon trust and confidence.”
Procedural Posture
- SOR issuedJul 9, 2008
- Answer filedJul 30, 2008Applicant admitted all allegations.
- Hearing held—Applicant elected to have the matter decided on the written record.
- Decision dateDec 3, 2008
Cite For
- Financial Irresponsibility as a Disqualifying Factor Under Guideline F
- The Importance of Demonstrating a Good-faith Effort to Resolve Debts
- The Impact of Voluntary Financial Decisions on Security Clearance Eligibility