Summary
A 44-year-old security officer was denied a security clearance under Guideline F, Financial Considerations, due to significant and unresolved financial issues. The Statement of Reasons cited seven delinquent accounts totaling approximately $37,000, including a credit card account of that amount, and a history of not meeting financial obligations. One collection account was threatening legal action.
Although the applicant had recently discharged these debts through bankruptcy, the decision highlighted a lack of evidence demonstrating a track record of financial responsibility or that the financial problems were unlikely to recur. Specific concerns included the applicant's failure to show a good-faith effort to repay overdue creditors or resolve debts beyond the bankruptcy filing, and a lack of evidence regarding a budget or lifestyle changes to prevent future financial difficulties.
Furthermore, the applicant did not demonstrate sufficient income to meet living expenses and debts. While Disqualifying Conditions AG ¶ 19(a) and AG ¶ 19(c) were raised, and Mitigating Conditions AG ¶ 20(b) and AG ¶ 20(c) were applied, the applicant ultimately failed to provide sufficient evidence to establish financial responsibility or that the problems would not recur, leading to the denial.
Why the Applicant Was Denied
- The applicant did not provide sufficient evidence to establish a track record of financial responsibility.
- The applicant's financial problems were not shown to be unlikely to recur after bankruptcy discharge.
- The applicant failed to demonstrate efforts to resolve debts beyond filing for bankruptcy.
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 ControlThe applicant's financial problems were partially caused by periods of unemployment and family obligations.
- AG ¶ 20(c)rejectedThe Person Has Received or Is Receiving Counseling for the ProblemWhile the applicant received counseling due to bankruptcy, he did not demonstrate that his financial issues were under control.
Key Rule Quoted
“Eligibility for access to classified information may be granted "only upon a finding that it is clearly consistent with the national interest to do so."”
Procedural Posture
- SOR issuedMay 19, 2014
- Answer filedJun 9, 2014Applicant elected to have the case decided on the written record.
- Hearing held—No hearing; decision based on written record.
- Decision dateJun 2, 2015
Cite For
- Insufficient Evidence of Financial Responsibility Under Guideline F
- Impact of Bankruptcy Discharge on Security Clearance Eligibility
- Consideration of Personal Circumstances in Financial Issues