Summary
A 52-year-old security guard was denied a security clearance under Guideline F (Financial Considerations) due to significant and recurrent financial issues. The applicant had a Chapter 7 bankruptcy discharge in December 2009, which included approximately $280,000 in debt.
As of December 2012, the applicant still owed about $17,000 in delinquent debts. These included federal income taxes, evidenced by an IRS tax lien filed in February 2011, as well as two collection debts of $180 and $20. Additionally, the applicant was $151 past due on a credit card account with a balance of $639, exceeding his credit limit, and owed a $3,372 loan deficiency balance for a repossessed vehicle.
The judge determined that the applicant's financial problems demonstrated poor financial judgment and a history of not meeting financial obligations. Despite the application of several mitigating conditions, the persistent and substantial nature of the financial issues led to the conclusion that the applicant did not meet the reliability and trustworthiness standards required for a security clearance, resulting in a denial.
Why the Applicant Was Denied
- The applicant had approximately $280,000 in debt discharged in a Chapter 7 bankruptcy in December 2009.
- As of December 2012, the applicant owed about $17,000 in delinquent federal taxes and other debts.
- The applicant's financial situation remained tenuous, with a history of not meeting financial obligations.
Conditions Referenced
- AG ¶ 19(a)appliedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)appliedA History of Not Meeting Financial Obligations
- AG ¶ 19(e)appliedConsistent Spending Beyond One’s Means
- AG ¶ 20(a)rejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
- AG ¶ 20(b)rejectedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
- AG ¶ 20(c)rejectedThe Person Has Received or Is Receiving Counseling for the Problem
- AG ¶ 20(d)rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve 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 20, 2012
- Answer filedJan 30, 2013Requested decision without a hearing.
- Hearing held—No hearing; decision based on written submissions.
- Decision dateJun 17, 2013
Cite For
- Financial Considerations Under Guideline F
- Impact of Bankruptcy on Security Clearance Eligibility
- Recurrent Financial Issues as a Disqualifying Factor