Summary
A security clearance for a sheet metal worker was denied under Guideline F (Financial Considerations) due to a history of financial difficulties. The applicant had filed multiple petitions for bankruptcy over the past 20 years. His most recent bankruptcy filing listed over $65,000 in delinquent debt, with nearly half attributed to past-due taxes.
The record showed that the applicant began incurring past-due tax debts shortly after his last Chapter 13 bankruptcy was discharged in 2006. As of the close of the record, he had unresolved federal and state tax liens totaling over $20,000, entered in 2006, 2010, and 2013. The applicant's claim that his current financial trouble stemmed from a recent government shutdown was refuted by evidence of unpaid taxes and tax liens predating the shutdown.
While the applicant did file for Chapter 13 and likely received financial counseling, this was deemed insufficient to mitigate the security concerns raised by his adverse financial history. The judge concluded that the applicant failed to demonstrate sufficient financial stability and responsibility, leading to the denial of his security clearance.
Why the Applicant Was Denied
- Applicant has a long history of financial problems, including multiple bankruptcies over the past 20 years.
- The most recent bankruptcy filing lists over $65,000 in delinquent debt, with significant past-due taxes.
- Insufficient evidence was provided to demonstrate that the applicant's financial issues are 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 ¶ 19(e)raisedConsistent Spending Beyond One's Means
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago or InfrequentlyThe applicant's financial issues are ongoing and not infrequent.
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlThe applicant's financial troubles predate the recent government shutdown.
- AG ¶ 20(c)rejectedReceived Counseling for the ProblemWhile the applicant filed for Chapter 13 bankruptcy, there is no evidence of effective financial counseling.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsThe applicant did not provide evidence of timely payments to the Chapter 13 trustee.
Key Rule Quoted
“"[N]o one has a ‘right’ to a security clearance."”
Procedural Posture
- SOR issuedSep 25, 2014
- Answer filedNov 24, 2014Applicant waived hearing and requested decision on written record.
- Hearing held—No hearing; decision based on written record.
- Decision dateJun 30, 2015
Cite For
- Denial of Security Clearance Due to Financial Irresponsibility Under Guideline F
- Impact of Multiple Bankruptcies on Security Clearance Eligibility
- Insufficient Evidence of Financial Reform as a Basis for Clearance Denial