Summary
A 32-year-old defense contractor and military veteran was denied a security clearance under Guideline F (Financial Considerations) due to a history of financial issues. These issues included a Chapter 7 bankruptcy filed in 2005, which discharged his debts that same year, and 13 delinquent debts totaling approximately $35,000. The applicant admitted to owing all these debts, and three cars were repossessed. He had not made any payments on these debts since February 2012 and had not received additional financial counseling since his bankruptcy.
The applicant's financial difficulties were recent and ongoing, with his finances not yet under control. While he had been unemployed for about a year after his military discharge and pays $500 per month in child support, he could not explain why some smaller debts remained unpaid. He had consulted an attorney about filing a Chapter 13 bankruptcy.
Ultimately, the judge found that the applicant had not demonstrated a good-faith effort to repay overdue creditors or resolve his debts. His financial issues were not fully mitigated by circumstances beyond his control, and they continued to cast doubt on his current reliability, trustworthiness, and good judgment, leading to the denial of his security clearance.
Why the Applicant Was Denied
- The applicant failed to demonstrate a good-faith effort to repay overdue creditors or resolve debts.
- The applicant's financial issues were recent and ongoing, casting doubt on his reliability and trustworthiness.
- The applicant's financial problems were not fully mitigated by circumstances beyond his control.
Conditions Referenced
- F.19(a)raisedInability or Unwillingness to Satisfy Debts
- F.19(c)raisedA History of Not Meeting Financial Obligations
- F.20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlThe applicant's financial issues stemmed from circumstances such as unemployment and a divorce.
- F.20(c)rejectedThe Person Has Received or Is Receiving Counseling for the ProblemThe applicant did not demonstrate ongoing financial counseling beyond initial bankruptcy.
- F.20(d)rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant did not provide sufficient evidence of a good-faith effort to resolve debts.
Key Rule Quoted
“Any doubt concerning personnel being considered for access to classified information will be resolved in favor of national security.”
Procedural Posture
- SOR issuedApr 18, 2012
- Answer filedMay 14, 2012
- Hearing heldJul 17, 2012
- Decision dateJul 26, 2012
Cite For
- Failure to Demonstrate a Good-faith Effort to Resolve Financial Obligations Under Guideline F
- Impact of Ongoing Financial Issues on Security Clearance Eligibility
- Consideration of Circumstances Beyond Control in Financial Security Concerns