Summary
The applicant, a 56-year-old entrepreneur seeking a security clearance for defense contracts, faced financial issues under Guideline F, including significant delinquent debts and a dismissed Chapter 13 bankruptcy. The judge found that the applicant's financial irresponsibility raised concerns about her reliability and trustworthiness, leading to a denial of her security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: a $34,546 home equity loan past due more than 180 days (1.a). a mortgage of $232,734 past due more than 120 days (1.b). a credit card account past due more than 120 days in the approximate amount of $13,938 (1.c). a credit card in collection for $20,646 (1.d). another credit card in collection for $12,230 (1.e). two accounts in collection to the same creditor for $696 (1.f). $444 (1.g). an account in collection for $17,684 (1.h).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d). The decision turned on the following: The applicant failed to resolve significant delinquent debts totaling approximately $46,000; The applicant's Chapter 13 bankruptcy was dismissed due to lack of action and failure to provide required documentation; The applicant's financial history indicated a pattern of irresponsibility and inability to manage debts.
Why the Applicant Was Denied
- The applicant failed to resolve significant delinquent debts totaling approximately $46,000.
- The applicant's Chapter 13 bankruptcy was dismissed due to lack of action and failure to provide required documentation.
- The applicant's financial history indicated a pattern of irresponsibility and inability to manage debts.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to RecurThe applicant's debts were not resolved and continued to accumulate.
- AG ¶ 20(b)rejectedThe Conditions That Resulted in the Financial Problems Were Largely Beyond the Person’s ControlThe applicant's financial issues stemmed from her business decisions and were not beyond her control.
- AG ¶ 20(c)appliedThe Person Has Received or Is Receiving Counseling for the Problem And/or There Are Clear Indications That the Problem Is Being Resolved or Is Under ControlThe applicant received financial counseling required for bankruptcy, but did not demonstrate implementation of its advice.
- AG ¶ 20(d)rejectedThe Individual Has Initiated a Good-faith Effort to Repay the Overdue Creditors or Otherwise Resolve DebtsThe applicant did not establish a meaningful track record of debt payment or a systematic method for handling debts.
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 issuedJul 21, 2010
- Answer filedAug 24, 2010
- Hearing heldMar 8, 2011
- Decision dateMay 25, 2011
Cite For
- Financial Irresponsibility Under Guideline F
- Impact of Unresolved Debts on Security Clearance Eligibility
- Dismissal of Bankruptcy as a Factor in Financial Considerations