Summary
A 41-year-old single mother and U.S. Navy veteran was denied a security clearance under Guideline F, Financial Considerations, due to significant and unresolved financial issues. The applicant had approximately $134,000 in delinquent debts, primarily student loans, and filed a Chapter 13 bankruptcy petition in 2013, listing over $116,000 in liabilities.
The Statement of Reasons detailed numerous concerns, including a lack of evidence regarding payments made to the bankruptcy plan, an unclear bankruptcy status, and other unresolved delinquent debts. The record was silent on any extenuating circumstances for the student loans and did not indicate financial counseling or that her financial problems were being resolved. The applicant had also disclosed wage garnishments for student loans and an automobile loan on a 2012 security clearance application.
Ultimately, the judge found insufficient evidence of responsible financial management or mitigation of the financial concerns. The applicant admitted to the delinquent debts and the bankruptcy but did not provide documentation of payments or efforts to act responsibly. Consequently, the security clearance was denied, as granting it was deemed inconsistent with national interest.
Why the Applicant Was Denied
- The applicant admitted to 14 delinquent debts totaling approximately $134,000, including student loans and a Chapter 13 bankruptcy petition.
- There was no evidence of payments made towards the bankruptcy plan, and the status of the bankruptcy was unclear.
- The applicant did not provide documentation to demonstrate responsible financial management or mitigation efforts.
Conditions Referenced
- FC DC AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- FC DC AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- FC MC AG ¶ 20(a)rejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to RecurThe applicant's financial difficulties were recent and ongoing.
- FC MC AG ¶ 20(b)rejectedConditions That Resulted in the Behavior Were Largely Beyond the Person's ControlThe applicant did not present evidence of extenuating circumstances.
- FC MC AG ¶ 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant filed for bankruptcy, but there was no evidence of payments made.
- FC MC AG ¶ 20(c)rejectedThe Person Has Received or Is Receiving Counseling for the ProblemThere were no indications that the applicant's financial problems were being resolved.
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedDec 8, 2014
- Answer filed—Applicant requested a review based on the written record.
- Hearing held—No hearing was held; decision based on written record.
- Decision dateNov 21, 2015
Cite For
- Denial of Security Clearance Due to Significant Financial Issues Under Guideline F
- Insufficient Evidence of Financial Responsibility and Mitigation Efforts
- Impact of Recent Financial Difficulties on Security Clearance Eligibility