Summary
The applicant, a 35-year-old divorced mother of two, sought a trustworthiness determination for a public trust position but was denied due to significant financial issues, including over $452,000 in debts and a recent bankruptcy filing. The judge found that the applicant's financial difficulties were longstanding and unresolved, raising concerns about her reliability and judgment.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant admits that she is indebted to a creditor in the amount of $131. This debt has not been paid, but has been included in her bankruptcy petition. It is unresolved (1.a). Applicant admits that she is indebted to a creditor in the amount of $89. This debt has not been paid, but has been included in her bankruptcy petition. It is unresolved (1.b). Applicant admits that she is indebted to a credit union in the amount of $8,231. This debt has not been paid, but has been included in her bankruptcy petition with the revised amount of $11,921.41. Applicant has stated this account may be her ex-husband’s, but did not provide any information to support that statement. It is unresolved (1.c). Applicant admits that she is indebted to a creditor in the amount of $783. This debt has not been paid, but has been included in her bankruptcy petition. It is unresolved (1.d). Applicant admits that she is indebted to a creditor in the amount of $607. This debt has not been paid, but has been included in her bankruptcy petition with the revised amount of $1,149.03. It is unresolved (1.e). Applicant admits that she is indebted to a creditor in the amount of $1,131. This debt has not been paid, nor is it included in her bankruptcy petition. It is unresolved (1.f). Applicant denies that she is indebted to a collection agency in the amount of $5,912. She states in her Answer, “I was not able to locate debtor. No information found.” This debt has not been included in her bankruptcy petition (1.g). Applicant denies that she is indebted to the same collection agency as 1.g for a different account in the amount of $698. She states in her Answer, “I was not able to locate debtor. No information found.” This debt has not been included in her bankruptcy petition (1.h). Applicant admits that she is indebted to a mortgage company for a first mortgage loan that went to foreclosure with a principal balance of $318,000. An unsecured debt in the amount of $339,533.83 to a different creditor is included in her bankruptcy petition. This debt is unresolved (1.i). Applicant admits that she is indebted to a mortgage company for a second mortgage loan that was charged off with a principal balance of $105,000. This debt is not included in her bankruptcy petition. It is unresolved (1.j). Applicant admits that she is indebted to a creditor in the amount of $3,424. This debt has not been paid, nor is it included in her bankruptcy petition. It is unresolved (1.k). Applicant admits that she is indebted to a creditor in the amount of $209. This debt has not been paid, nor is it included in her bankruptcy petition. It is unresolved (1.l). Applicant admits that she is indebted to a creditor in the amount of $4,326. This debt has not been paid, nor is it included in her bankruptcy petition. It is unresolved (1.m). Applicant admits that she is indebted to a creditor in the amount of $3,590. This debt has not been paid, nor is it included in her bankruptcy petition. It is unresolved (1.n).
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), AG ¶ 20(d). The decision turned on the following: The applicant admitted to significant financial overextension, including unresolved debts totaling over $452,121; The applicant's recent bankruptcy filing did not demonstrate a sufficient good faith effort to resolve her debts or mitigate the financial concerns; The applicant provided no evidence of responsible financial management or character references to support her trustworthiness.
Why the Applicant Was Denied
- The applicant admitted to significant financial overextension, including unresolved debts totaling over $452,121.
- The applicant's recent bankruptcy filing did not demonstrate a sufficient good faith effort to resolve her debts or mitigate the financial concerns.
- The applicant provided no evidence of responsible financial management or character references to support her 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)rejectedConditions Largely Beyond the Person's ControlThe applicant did not provide sufficient evidence to show responsible actions taken to address her debts.
- AG ¶ 20(c)rejectedIndications That the Problem Is Being Resolved or Is Under ControlThe applicant's bankruptcy filing was insufficient to demonstrate resolution of her financial issues.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsThe applicant's bankruptcy did not indicate a sufficient good faith effort to resolve her debts.
Key Rule Quoted
“Failure or inability to live within one’s means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual’s reliability, trustworthiness and ability to protect classified information.”
Procedural Posture
- SOR issuedDec 1, 2011
- Answer filedDec 20, 2011Applicant requested a decision without a hearing.
- Hearing held—No hearing was held; decision made based on written submissions.
- Decision dateJun 21, 2012
Cite For
- Financial Overextension as a Disqualifying Factor Under Guideline F
- Insufficient Evidence of Good Faith Efforts to Resolve Financial Issues
- Impact of Unresolved Debts on Trustworthiness Determinations