Summary
A 53-year-old senior consulting field engineer was denied a security clearance under Guideline F (Financial Considerations) due to a history of financial difficulties. The Statement of Reasons detailed three bankruptcies: a Chapter 7 filed in December 1997 and discharged in April 1998, and two Chapter 13 filings in August 2000 and November 2000, both dismissed for failure to make payments.
Additionally, the applicant had multiple delinquent debts, including a home mortgage past due by $27,335, a credit card account collected by garnishment for $6,989, and several other accounts in collection. These included charge accounts for $2,722, $157, and $2,598, a utility bill for $173, a college tuition bill for $703, and a student loan for $259.
Despite some debts being resolved, the judge found insufficient evidence of responsible financial management and a lack of recent financial counseling. The denial was based on the applicant's inability to manage financial obligations, financial recklessness, and failure to demonstrate control over his financial situation, raising concerns about his judgment and reliability.
Why the Applicant Was Denied
- The applicant has a history of multiple bankruptcies and delinquent debts, indicating an inability to manage financial obligations.
- The applicant's financial recklessness and lack of proactive measures to address debts raised concerns about his judgment and reliability.
- The applicant did not demonstrate sufficient evidence of financial counseling or control over his financial situation.
Conditions Referenced
- AG ¶ 19(a)appliedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)appliedA History of Not Meeting Financial Obligations
- AG ¶ 19(e)appliedConsistent Spending Beyond One’s Means
- AG ¶ 20(a)rejectedBehavior Happened Long Ago or InfrequentlyThe applicant's debts are recent and numerous.
- AG ¶ 20(b)notedConditions Beyond the Person's Control
- AG ¶ 20(c)rejectedReceived Counseling for the ProblemThe applicant has not sought recent financial counseling.
- AG ¶ 20(d)appliedGood-faith Effort to Repay DebtsThe applicant made timely payments on the modified mortgage.
- AG ¶ 20(e)appliedReasonable Basis to Dispute DebtsThe applicant had reasonable grounds to dispute some debts, which were resolved.
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the AG.”
Procedural Posture
- SOR issuedMay 1, 2013
- Answer filedMay 7, 2013
- Hearing heldSep 20, 2013
- Decision dateNov 26, 2013Decision delayed due to furlough of administrative judges.
Cite For
- Denial of Security Clearance Based on Financial Irresponsibility Under Guideline F
- Impact of Multiple Bankruptcies on Security Clearance Eligibility
- Consideration of Whole-person Factors in Financial Cases