Summary
The applicant, a 54-year-old administrative assistant for a defense contractor, faced security concerns under Guideline F due to multiple delinquent debts totaling approximately $15,056, including a Chapter 7 bankruptcy discharge in 2005. Despite some efforts to address her debts, the judge found insufficient evidence of responsible behavior or a clear plan to resolve her financial issues, leading to a denial of her security clearance application.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: The 2005 bankruptcy discharge alleged in SOR ¶ 1.a was necessitated due to Applicant’s debt to the IRS of about $46,000 for federal taxes for years 1994 through 2000 (1.a). The debt in SOR ¶ 1.b is a judgment for a delinquent state tax debt in the amount of $2,094 (1.b). The debt in SOR ¶ 1.c is a collection account for a telecommunications debt in the amount of $447 (1.c). The debt in SOR ¶ 1.d is a collection account for a credit card debt in the amount of $3,641 (1.d). The debt in SOR ¶ 1.e is a collection account in the amount of $650. There is no information on the underlying debt (1.e). The debt in SOR ¶ 1.f is a collection account for a credit card debt in the amount of $4,578 (1.f). The debt in SOR ¶ 1.g is a collection account for an insurance premium debt in the amount of $117 (1.g). The debt in SOR ¶ 1.h is a collection account for a credit card debt in the amount of $1,238 (1.h). The debt in SOR ¶ 1.i is a collection account for a credit card debt in the amount of $2,000 (1.i). The debt in SOR ¶ 1.j is a collection account for a consumer debt in the amount of $321 (1.j).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(b), AG ¶ 20(c). The decision turned on the following: Applicant has multiple unresolved debts and a history of financial irresponsibility; The applicant failed to establish a responsible plan to address her debts; The applicant's past bankruptcy and ongoing financial issues raised doubts about her reliability and trustworthiness.
Why the Applicant Was Denied
- Applicant has multiple unresolved debts and a history of financial irresponsibility.
- The applicant failed to establish a responsible plan to address her debts.
- The applicant's past bankruptcy and ongoing financial issues raised doubts about her reliability and trustworthiness.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)appliedConditions Beyond the Person's ControlApplicant's move to assist her father and lower-paying job were beyond her control, but she did not act responsibly to resolve her debts.
- AG ¶ 20(c)appliedReceived Counseling for the ProblemApplicant received financial counseling during her bankruptcy but none since.
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedNov 14, 2012
- Answer filedDec 5, 2012with supplemental information on December 21, 2012
- Hearing heldMar 12, 2013
- Decision dateApr 29, 2013
Cite For
- Financial Irresponsibility Under Guideline F
- Impact of Unresolved Debts on Security Clearance Eligibility
- Consideration of the Whole-person Concept in Financial Cases