Summary
The applicant, a 41-year-old warehouse specialist, faced security clearance denial under Guideline F due to significant financial issues, including delinquent debts totaling $37,386 and a history of bankruptcy filings. Despite some efforts to address her debts, the judge found her financial mismanagement too pervasive and recent to mitigate security concerns, leading to a denial of her application.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: $67 collection balance for services on a utility services account opened in May 2006 (1.a). $47 delinquent electric services debt referred for collection (1.b). $2,373 wireless telephone services debt placed for collection in May 2006 (1.c). $2,373 second wireless services debt placed for collection (1.d). $155 natural gas debt owed since December 2003 referred for collection (1.e). $37 unpaid medical debt placed for collection (1.f). $22,000 federal student loan debt (1.g). $720 judgment against applicant (1.h). $619 charged off installment loan (1.i). $292 charged off installment loan (1.j). $914 charged off installment loan (1.k). $459 judgment against applicant (1.l). $321 judgment against applicant (1.m). $764 delinquent installment loan balance sent for collection (1.n). $603 judgment against applicant (1.o). $560 charged off debt (1.p). $914 charged off debt (1.q). $679 charged off installment loan (1.r). $711 judgment against applicant (1.s). $142 for a returned check (1.t). $116 dental charges referred for collection (1.u). $215 dental charges referred for collection (1.v). $231 dental charges referred for collection (1.w). $120 mail-order DVD supplier placed a debt balance for collection (1.x).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(b), AG ¶ 20(d). The decision turned on the following: The applicant has delinquent debts totaling $37,386, which raise significant security concerns; The applicant's financial problems are pervasive and recent, indicating poor self-control and lack of judgment; The applicant failed to provide evidence of a reasonable plan to address her outstanding debts, particularly her student loans.
Why the Applicant Was Denied
- The applicant has delinquent debts totaling $37,386, which raise significant security concerns.
- The applicant's financial problems are pervasive and recent, indicating poor self-control and lack of judgment.
- The applicant failed to provide evidence of a reasonable plan to address her outstanding debts, particularly her student loans.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlWhile the applicant faced challenges, her recent debts were not shown to be beyond her control.
- AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue CreditorsThe applicant made some payments under her Chapter 13 bankruptcy plan.
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 16, 2008
- Answer filedApr 7, 2008Applicant requested a decision without a hearing.
- Hearing held—No hearing was conducted.
- Decision dateJul 10, 2008
Cite For
- Financial Mismanagement Under Guideline F
- Impact of Recent Debts on Security Clearance Eligibility
- Good-faith Efforts in Bankruptcy Proceedings