Summary
The applicant, a 45-year-old former military service member, faced security clearance denial under Guideline F due to unresolved financial issues, including a dismissed Chapter 13 bankruptcy and numerous delinquent debts totaling approximately $42,952. Despite some efforts to address her debts, the judge found insufficient evidence of responsible financial management and concluded that the applicant's financial problems raised doubts about her reliability and trustworthiness.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: $3,337 owed to an apartment complex for a broken lease when she vacated the apartment in June 2011 without providing notice to the landlord (1.b). $245 for cable service, which was paid in November 2015 (1.c). $2,037 student loan (1.d). $684 student loan (1.e). $1,793 student loan (1.f). $1,164 for credit cards reported as lost or stolen (1.j). $1,560 for credit cards reported as lost or stolen (1.l).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d). The decision turned on the following: Applicant failed to maintain payments on her Chapter 13 bankruptcy plan, leading to its dismissal; Numerous delinquent debts remained unresolved, raising concerns about her financial responsibility; The applicant did not provide sufficient evidence to demonstrate that her financial issues were under control or unlikely to recur.
Why the Applicant Was Denied
- Applicant failed to maintain payments on her Chapter 13 bankruptcy plan, leading to its dismissal.
- Numerous delinquent debts remained unresolved, raising concerns about her financial responsibility.
- The applicant did not provide sufficient evidence to demonstrate that her financial issues were under control or unlikely to recur.
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 Largely Beyond the Person's ControlApplicant's financial problems were partially due to her father's illness and a period of unemployment.
- AG ¶ 20(c)appliedReceiving Counseling for the ProblemApplicant hired a law firm to assist with her credit issues.
- AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue CreditorsApplicant made some payments towards her debts, including a small debt and student loans.
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedSep 4, 2014
- Answer filedFeb 7, 2015Applicant elected to have her case decided on the written record.
- Hearing held—Case assigned on 12/10/2015.
- Decision dateJan 28, 2016
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations Under Guideline F
- Impact of Dismissed Bankruptcy on Security Clearance Eligibility
- Insufficient Evidence of Financial Responsibility and Stability in Security Clearance Cases.