Summary
A 42-year-old service order coordinator for a defense contractor was denied a security clearance due to financial considerations under Guideline F. The applicant had two Chapter 7 bankruptcies and multiple delinquent debts totaling approximately $14,758. Specific allegations included a $7,600 line of credit from May 2008, two clothing debts of $1,306 and $1,479, and a charge account with a jewelry and camera store. An $822 delinquent telephone bill, charged off in April 2010, was paid in full in February 2011.
Disqualifying conditions related to financial issues were raised, while mitigating conditions concerning the applicant's efforts to address some debts were also considered. However, the judge ultimately found that the applicant's financial issues, including her ongoing federal tax debt, indicated a continued risk.
The denial was based on the applicant's multiple unresolved delinquent debts and her failure to present a reasonable plan to address her federal tax debt. While personal circumstances such as her husband's departure and her son's behavior contributed to her difficulties, the judge noted that her employment issues were largely self-inflicted. Despite some post-bankruptcy financial management efforts, the lack of proactive measures to resolve the tax debt led to the denial of her security clearance.
Why the Applicant Was Denied
- The applicant had multiple delinquent debts totaling approximately $14,758, which were not resolved in a timely manner.
- The applicant failed to demonstrate a reasonable plan to address her federal tax debt, which was not included in the SOR but raised concerns about her financial responsibility.
- The applicant's financial issues were exacerbated by her husband's departure and her son's irresponsible behavior, but her own employment issues were largely self-inflicted.
Conditions Referenced
- AG ¶ 19(a)appliedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(b)appliedIndebtedness Caused by Frivolous or Irresponsible Spending
- AG ¶ 19(c)appliedA History of Not Meeting Financial Obligations
- AG ¶ 19(e)appliedConsistent Spending Beyond One's Means
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago or Occurred Under Circumstances Unlikely to RecurThe applicant's debts were recent and numerous.
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlWhile some circumstances were beyond her control, her employment losses were largely her fault.
- AG ¶ 20(c)rejectedReceived Counseling for the ProblemInsufficient time had passed since her bankruptcy discharge to establish a track record of financial responsibility.
- AG ¶ 20(d)rejectedInitiated a Good-faith Effort to Repay Overdue CreditorsThe applicant had not made reasonable efforts to resolve her delinquent debts.
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the AG.”
Procedural Posture
- SOR issuedMay 26, 2011
- Answer filedJul 20, 2011
- Hearing heldOct 11, 2011
- Decision dateNov 21, 2011
Cite For
- Denial Based on Financial Irresponsibility Under Guideline F
- Impact of Unresolved Federal Tax Debts on Security Clearance Eligibility
- Consideration of Personal Circumstances in Financial Evaluations for Security Clearances