Summary
A 44-year-old defense contractor was denied a security clearance under Guideline F (Financial Considerations) due to a history of significant financial issues. The applicant had accumulated approximately $42,112 in delinquent debts, including a defaulted mortgage and credit card bills, along with judgments totaling $1,890 for rent and $50 to an oil company.
The applicant's financial history included filing for Chapter 7 bankruptcy in December 2000, which was discharged in July 2002 with approximately $83,600 in debts. Subsequent Chapter 13 bankruptcy petitions were filed in July 2007 (dismissed in August 2007) and January 2009 (not yet confirmed). The applicant's financial difficulties spanned nine years, marked by a pattern of not meeting obligations and poor judgment, such as purchasing a $41,000 vehicle after her second bankruptcy. Despite a current net monthly income of $6,125 and making initial payments in her latest Chapter 13 plan, the judge found insufficient evidence of financial stability or a good faith effort to resolve debts.
The denial was based on the applicant's nearly ten-year accumulation of delinquent debts, three bankruptcy filings indicating financial instability, and a lack of responsible behavior or effective debt management. The judge concluded that these issues raised security concerns.
Why the Applicant Was Denied
- Applicant accumulated delinquent debts on numerous accounts for a period of almost ten years.
- Applicant filed for bankruptcy on three occasions, indicating a pattern of financial instability.
- The applicant's financial difficulties were not mitigated by evidence of responsible behavior or effective debt management.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(b)raisedIndebtedness Caused by Frivolous or Irresponsible Spending
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was Infrequent, or Unlikely to RecurApplicant's financial difficulties span a period of nine years.
- AG ¶ 20(b)rejectedConditions That Resulted in Financial Problems Were Largely Beyond the Person's ControlApplicant made poor financial decisions and resigned from a stable job.
- AG ¶ 20(c)rejectedReceived Counseling for the Problem And/or Indications That the Problem Is Being ResolvedApplicant completed a brief online financial counseling course but did not seek formal counseling.
- AG ¶ 20(d)rejectedInitiated a Good-faith Effort to Repay Overdue CreditorsRecent efforts to file for Chapter 13 bankruptcy were insufficient to demonstrate control over financial issues.
Key Rule Quoted
“Any doubt concerning personnel being considered for access to classified information will be resolved in favor of national security.”
Procedural Posture
- SOR issuedJan 27, 2009
- Answer filedFeb 14, 2009
- Hearing heldApr 9, 2009
- Decision date—
Cite For
- Financial Irresponsibility as a Disqualifying Factor Under Guideline F
- Pattern of Multiple Bankruptcies Impacting Security Clearance Eligibility
- Insufficient Evidence of Financial Stability Despite Recent Bankruptcy Filings