Summary
A 41-year-old management analyst, employed by a defense contractor, was denied a security clearance under Guideline F (Financial Considerations) due to significant and ongoing financial issues. The applicant's Statement of Reasons detailed multiple delinquent debts totaling over $68,000, alongside a Chapter 7 bankruptcy filing in May 2000, which was discharged in September 2000.
Specific debts included a $5,500 deficiency from a March 2010 automobile repossession, settled for thirty cents on the dollar in December 2010. Eight educational loans, delinquent in 2007 and 2008, were rehabilitated in January 2010 through nine monthly $200 payments. Other debts, ranging from $65 to $8,954, were addressed through various means, including full payments, settlements, and payment agreements, with some resolved between November 2009 and January 2011. A medical bill for $8,954 remained in collection, with the applicant making $150 monthly payments.
Despite some efforts to resolve her debts, the judge determined that the applicant's financial problems were recent, multiple, and not attributable to unusual, non-recurring circumstances. The applicant did not establish a clear track record demonstrating that her financial difficulties would not recur, particularly in light of impending income changes. Consequently, the security clearance was denied.
Why the applicant was denied
- The applicant has a history of financial difficulties and financial irresponsibility going back several years.
- The applicant's financial problems were both recent and multiple, and not due to unusual circumstances unlikely to recur.
- The applicant did not establish a clear track record that suggests her financial problems will not recur.
Conditions referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was Infrequent, or Occurred Under Circumstances Unlikely to RecurThe applicant's financial problems were recent and multiple.
- AG ¶ 20(b)rejectedConditions Resulting in Financial Problems Were Largely Beyond the Person's ControlWhile the murder of her son's father was beyond her control, it did not precipitate her financial problems.
- AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue Creditors or Resolve DebtsThe applicant made some payments on her debts, but not enough to fully mitigate concerns.
Key rule quoted
“The Government has a compelling interest in ensuring each applicant possesses the requisite judgement, reliability, and trustworthiness of those who must protect national interests as their own.”
Procedural posture
- SOR issuedSep 9, 2010
- Answer filed—
- Hearing heldJan 5, 2011
- Decision dateMay 31, 2011
Cite for
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Impact of Financial History on Security Clearance Eligibility
- Insufficient Mitigation of Financial Issues Under Guideline F