Summary
A 33-year-old defense contractor was denied a security clearance under Guideline F (Financial Considerations) due to a history of financial difficulties. The applicant had incurred 23 delinquent debts totaling approximately $29,864 over several years and filed for Chapter 7 bankruptcy, which was discharged in September 2014. A judgment for $91 from 2008 also remained unresolved for years.
Despite the bankruptcy, the applicant still had unresolved delinquent debts, including student loans, and did not provide evidence of payments, settlement agreements, or plans to address these remaining accounts. While the applicant stated he had taken money management courses, received financial counseling, and was attempting to rebuild his credit, he did not demonstrate a consistent pattern of responsibility for his debts, particularly post-bankruptcy.
The decision highlighted a lengthy history of financial problems and a lack of sufficient evidence to mitigate the security concerns related to financial considerations. The judge found insufficient evidence of responsible debt management following the bankruptcy, leading to the denial of the security clearance.
Why the Applicant Was Denied
- Applicant has a lengthy history of financial problems, including 23 delinquent debts totaling approximately $29,864.
- Applicant filed for Chapter 7 bankruptcy, but still has unresolved delinquent debts post-bankruptcy.
- There is no evidence of payments or plans to address remaining debts after bankruptcy.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was Infrequent, or Unlikely to RecurApplicant's financial issues are ongoing and not resolved.
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlApplicant's financial issues were due to poor management and a DUI, which were within his control.
- AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue CreditorsApplicant received partial credit for filing bankruptcy.
- AG ¶ 20(c)rejectedReceived Counseling for the ProblemNo evidence of effective counseling or resolution of remaining debts.
Key Rule Quoted
“Any doubt concerning personnel being considered for access to classified information will be resolved in favor of national security.”
Procedural Posture
- SOR issuedAug 8, 2014
- Answer filed—Applicant requested review based on written record.
- Hearing held—No hearing; decision based on written record.
- Decision dateAug 12, 2015
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations Under Guideline F
- Impact of a History of Financial Difficulties on Security Clearance Eligibility
- Consideration of the Whole-person Concept in Security Clearance Decisions