Summary
The applicant, a 35-year-old defense contractor employee and Army veteran, faced security clearance denial under Guideline F due to significant financial issues, including multiple delinquent debts and a history of bankruptcy. The judge found that the applicant's financial irresponsibility raised concerns about his reliability and trustworthiness, ultimately leading to the denial of his security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant filed a Chapter 7 bankruptcy in September 2007 and the debts were discharged in January 2008 (1.a). a credit card debt in collection for $805 (1.b). a cable bill in collection for $917 (1.c). a credit card debt in collection for $514 (1.d). a telephone debt charged off for $585 (1.e). child support payments in collection for $14,447 (1.f). two debts to the Internal Revenue Service (IRS) for past-due taxes of $401 for tax year 2007 (1.g). two debts to the Internal Revenue Service (IRS) for past-due taxes of $1,211 for tax year 2003 (1.h). a tax debt of $600 due the IRS for tax year 2008 (1.i).
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 demonstrate a consistent and responsible approach to managing his debts after bankruptcy; He continued to incur delinquent debts and did not provide evidence of payments or a plan to resolve them; The applicant's failure to act responsibly regarding his financial obligations indicated a lack of good judgment.
Why the Applicant Was Denied
- The applicant failed to demonstrate a consistent and responsible approach to managing his debts after bankruptcy.
- He continued to incur delinquent debts and did not provide evidence of payments or a plan to resolve them.
- The applicant's failure to act responsibly regarding his financial obligations indicated a lack of good judgment.
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 incurred delinquent debt after bankruptcy discharge.
- AG ¶ 20(b)rejectedThe Conditions That Resulted in the Financial Problems Were Largely Beyond the Person’s ControlThe applicant did not establish a nexus between layoffs and failure to pay debts.
- AG ¶ 20(c)rejectedThe Person Has Received or Is Receiving Counseling for the ProblemThe applicant has not provided information on any counseling beyond bankruptcy.
- AG ¶ 20(d)rejectedThe Individual Has Initiated a Good-faith Effort to Repay the Overdue Creditors or Otherwise Resolve DebtsThe applicant failed to provide evidence of a good-faith effort to resolve 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 issuedSep 21, 2010
- Answer filedOct 12, 2010
- Hearing heldJan 25, 2011
- Decision dateMay 19, 2011
Cite For
- Financial Irresponsibility as a Disqualifying Factor Under Guideline F
- The Importance of Demonstrating a Good-faith Effort to Resolve Debts
- The Impact of Financial Management on Security Clearance Eligibility