Summary
The applicant, a 54-year-old employee seeking a security clearance, has a problematic financial history, including a Chapter 7 bankruptcy discharge in November 2015. The judge found insufficient evidence to mitigate security concerns stemming from the applicant's financial difficulties, leading to a denial of the security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: an unpaid judgment for $1,640 (1.a). a paid foreclosure on a mortgage loan (1.b). 19 collection accounts, 2 of which are paid, for a total of $7,685 past due (1.c). a past-due auto loan for $254 (1.d). 17 medical collection accounts, 3 of which are paid, for a total of $5,795 (1.e). a $600 collection account (1.f). a $410 collection account for wireless services (1.g). six medical collection accounts, two of which are paid, for a total of $1,760 (1.h). a past-due auto loan for $8,832 (1.i).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 18, AG ¶ 19(a), AG ¶ 20(a). The decision turned on the following: The applicant has a history of excessive indebtedness and financial problems; The applicant's financial history reflects a pattern of irresponsibility and instability; The applicant did not provide sufficient evidence to demonstrate future financial responsibility.
Why the applicant was denied
- The applicant has a history of excessive indebtedness and financial problems.
- The applicant's financial history reflects a pattern of irresponsibility and instability.
- The applicant did not provide sufficient evidence to demonstrate future financial responsibility.
Conditions referenced
- AG ¶ 18raisedFinancial ConsiderationsThe applicant's financial history raises concerns about reliability and trustworthiness.
- AG ¶ 19(a)appliedInability to Satisfy DebtsThe applicant has a history of not meeting financial obligations.
- AG ¶ 20(a)appliedFailure to Live Within MeansThe applicant's financial irresponsibility indicates poor self-control and judgment.
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 issuedJan 27, 2016
- Answer filedJul 13, 2015
- Hearing held—Case decided on written record.
- Decision dateJan 6, 2016
Cite for
- Denial Based on Financial Irresponsibility Under Guideline F
- Insufficient Evidence to Mitigate Financial Concerns
- Impact of Bankruptcy on Security Clearance Eligibility