Summary
A 26-year-old defense contractor employee was denied a security clearance under Guideline F (Financial Considerations) due to a history of financial difficulties. These issues included a Chapter 7 bankruptcy filed with her husband in 2007, which discharged their debts that same year. However, she subsequently accumulated approximately $12,364 in delinquent debts.
Specific concerns included an unpaid $2,428 judgment from the attorney who handled her bankruptcy, a $102 delinquent debt from a cable television account placed in her name for her mother-in-law, and an additional $702 delinquent loan not initially alleged in the Statement of Reasons. The applicant had not paid any of the alleged debts, though she testified to an intent to settle the judgment.
The denial was based on the applicant's failure to demonstrate a good-faith effort to resolve her recent and ongoing financial issues. The judge found that her financial problems were not entirely beyond her control, as she acknowledged making poor financial decisions, raising doubts about her reliability and judgment.
Why the applicant was denied
- The applicant failed to demonstrate a good-faith effort to resolve her debts.
- Ongoing financial issues raised doubts about her reliability and judgment.
- The applicant's financial problems were not fully outside her control, as she admitted to poor financial decisions.
Conditions referenced
- F.1.araisedInability or Unwillingness to Satisfy Debts
- F.1.craisedA History of Not Meeting Financial Obligations
- F.2.bappliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlThe applicant's financial issues were influenced by her husband's employment difficulties.
- F.2.crejectedThe Person Has Received or Is Receiving Counseling for the ProblemWhile the applicant received financial counseling, her ongoing financial issues were not resolved.
- F.2.drejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant's payments were insufficient to demonstrate a good-faith effort.
Key rule quoted
“Failure or inability to live within one’s means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual’s reliability, trustworthiness and ability to protect classified information.”
Procedural posture
- SOR issuedOct 2, 2010
- Answer filedNov 2, 2010
- Hearing heldJan 31, 2011
- Decision dateFeb 28, 2011
Cite for
- Insufficient Evidence of Financial Responsibility Under Guideline F
- Impact of Ongoing Financial Issues on Security Clearance Eligibility
- Consideration of the Whole-person Concept in Financial Evaluations