Summary
A 34-year-old customer service representative was denied a security clearance under Guideline F, Financial Considerations, due to significant and unresolved financial issues. The applicant had previously filed for Chapter 7 bankruptcy in May 2001, with approximately $10,000 in debts discharged by November 2002. However, subsequent to this discharge, she accumulated multiple new delinquent debts totaling over $20,000.
These new debts included two past-due mortgages amounting to $6,291 and $1,064, a charged-off automobile loan of $4,956, and a charged-off cell phone debt of $596. Additionally, two accounts, including a credit card debt, were placed for collection, totaling $776 and $778 respectively.
Despite being steadily employed, the applicant failed to demonstrate responsible financial management or provide evidence of good-faith efforts to repay these outstanding obligations. The decision cited her financial irresponsibility as raising concerns about her reliability and trustworthiness, leading to the denial of her security clearance.
Why the Applicant Was Denied
- The applicant admitted to multiple delinquent debts totaling approximately $20,461, which arose after a previous bankruptcy discharge.
- The applicant did not provide evidence of a good-faith effort to repay her debts or to manage her financial obligations responsibly.
- The applicant's financial irresponsibility raised concerns about her reliability and trustworthiness in handling classified information.
Conditions Referenced
- FC DC ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- 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 her current reliability.
- FC MC ¶ 20(b)rejectedThe Conditions That Resulted in the Financial Problems Were Largely Beyond the Person’s ControlThe applicant did not establish that her husband's actions were solely responsible for her financial issues.
- FC MC ¶ 20(d)rejectedThe Individual Has Initiated a Good-faith Effort to Repay the Overdue Creditors or Otherwise Resolve DebtsThe applicant presented no evidence of a plan to pay her debts or any actions 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 issuedAug 6, 2008
- Answer filedAug 30, 2008Applicant admitted all allegations.
- Hearing held—Applicant elected to proceed without a hearing.
- Decision dateJan 26, 2009
Cite For
- Denial of Security Clearance Due to Financial Irresponsibility Under Guideline F
- Failure to Demonstrate Good-faith Efforts to Resolve Debts
- Impact of Financial Issues on Reliability and Trustworthiness for Security Clearance