Summary
A 53-year-old applicant was denied a security clearance due to significant financial concerns under Guideline F. The applicant's financial difficulties stemmed from a failed business and personal health issues. Key allegations included a Chapter 13 bankruptcy filing in July 2007, substantial mortgage debt totaling $138,400 for a principal loan and $68,500 for a second mortgage, and a delinquent car loan of $4,503 transferred to collections. Additionally, the applicant had two business credit cards and seven medical bills.
While the applicant satisfied some medical bills, evidence of payment was not provided for other listed debts, including two business credit cards. One collection agency had no record of a debt the applicant believed he owed. Disqualifying conditions under Guideline F were raised, and mitigating conditions were considered.
Ultimately, the application was denied because the applicant failed to execute his Chapter 13 bankruptcy plan, leading to its dismissal. The amount of unresolved delinquencies remained significant despite some payments, and the applicant's overall progress in addressing his financial issues was deemed minimal compared to the total outstanding debts.
Why the Applicant Was Denied
- The applicant failed to execute a Chapter 13 bankruptcy order, leading to its dismissal.
- The amount of unresolved delinquencies remained significant despite some payments made.
- The applicant's overall progress in addressing his financial issues was deemed minimal compared to the total outstanding debts.
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 That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
- AG ¶ 20(c)appliedThe Person Has Received or Is Receiving Counseling for the Problem
- AG ¶ 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors
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 issuedMay 22, 2014
- Answer filedJun 20, 2014Applicant requested a decision on the written record.
- Hearing held—
- Decision dateNov 3, 2014
Cite For
- Failure to Comply with Bankruptcy Orders Under Guideline F
- Significant Unresolved Financial Delinquencies as a Trustworthiness Concern
- Mitigating Conditions Related to Financial Difficulties Caused by Circumstances Beyond Control