Summary
The applicant, a 42-year-old project manager for a defense contractor, faced security concerns under Guideline F due to a bankruptcy in 2006 and six unresolved debts totaling $66,159. Despite admitting responsibility for five debts and promising to resolve them, the applicant failed to demonstrate sufficient efforts to mitigate the financial issues, leading to a denial of her security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: bankruptcy discharge of her debts in September 2006 (1.a). 2007 default judgment—$4,175 (1.b). IRS tax lien—$60,605 (1.c). collection account—$162 (1.d). collection account—$279 (1.e). delinquent account—$276 (1.f). 2007 default judgment—$662 (1.g).
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(c), AG ¶ 20(d), AG ¶ 20(e). The decision turned on the following: The applicant failed to resolve any of the five admitted debts, which raised significant financial concerns; The applicant did not provide documentation of efforts to address her delinquent debts, undermining her claims of good faith; The applicant's financial difficulties were ongoing and indicative of poor self-control and judgment.
Why the Applicant Was Denied
- The applicant failed to resolve any of the five admitted debts, which raised significant financial concerns.
- The applicant did not provide documentation of efforts to address her delinquent debts, undermining her claims of good faith.
- The applicant's financial difficulties were ongoing and indicative of poor self-control and judgment.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)appliedConditions Largely Beyond the Person's ControlThe applicant's financial issues were partially due to business failures and unemployment.
- AG ¶ 20(c)appliedReceived Counseling for the ProblemThe applicant received financial counseling as part of her bankruptcy process.
- AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue CreditorsThe applicant admitted responsibility for her debts and promised to resolve them.
- AG ¶ 20(e)rejectedReasonable Basis to Dispute the Legitimacy of the Past-due DebtThe applicant did not provide documentation disputing any of the SOR debts.
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the revised adjudicative guidelines (AG).”
Procedural Posture
- SOR issuedJun 30, 2009
- Answer filedJul 29, 2009Applicant elected to have her case decided on the written record.
- Hearing held—No hearing was held; decision made on the written record.
- Decision dateOct 27, 2009
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Impact of Financial Mismanagement on Security Clearance Eligibility
- Consideration of Mitigating Conditions Under Guideline F