Summary
The applicant, a 46-year-old separated Army veteran, faced security concerns under Guideline F due to unresolved financial issues, including a dismissed Chapter 13 bankruptcy and delinquent federal taxes. The judge found that the applicant failed to demonstrate responsible financial behavior or provide sufficient evidence of debt resolution, leading to a denial of his security clearance application.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: The SOR lists a dismissed Chapter 13 bankruptcy from 2009 (1.a). The January 2014 credit report shows this medical account #1091894775 as being in a collection status with a balance of $2,622 (1.b). The January 2014 credit report shows this debt as a collection account #2630425 with a balance of $1,867 (1.c). The January 2015 credit report shows this as a past-due rent debt with a balance of $3,138 (1.d). The January 2014 credit report shows these as collection accounts #2600553 and #571584 with balances of $521 and $1,680 (1.e). The January 2014 credit report shows account #26267566550905067 in the amount of $3,346 as included in Applicant’s 2007 Chapter 13 bankruptcy (1.f). The January 2014 credit report shows account #2641268 as a charged-off account in the amount of $2,993 (1.g). Applicant failed to file and pay his federal income taxes for years 2009 through 2012 and that he owes delinquent taxes in the amount of approximately $10,500 (1.i).
The judge denied the clearance. The government raised disqualifying conditions F.1.a, F.1.c, F.1.g. The decision turned on the following: The applicant has unresolved debts totaling over $16,000 and delinquent federal taxes exceeding $55,000; He failed to provide evidence of responsible financial behavior or financial counseling; The applicant did not demonstrate that his financial problems are under control or unlikely to recur.
Why the Applicant Was Denied
- The applicant has unresolved debts totaling over $16,000 and delinquent federal taxes exceeding $55,000.
- He failed to provide evidence of responsible financial behavior or financial counseling.
- The applicant did not demonstrate that his financial problems are under control or unlikely to recur.
Conditions Referenced
- F.1.araisedInability or Unwillingness to Satisfy Debts
- F.1.craisedA History of Not Meeting Financial Obligations
- F.1.graisedFailure to File Federal Income Tax Returns as Required
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedJul 3, 2014
- Answer filedJul 22, 2014
- Hearing held—Decided on written record.
- Decision dateMar 11, 2015
Cite For
- Failure to Demonstrate Responsible Financial Behavior Under Guideline F
- Unresolved Debts as a Basis for Denial of Security Clearance
- Impact of Financial Issues on Security Clearance Eligibility