Summary
The applicant, a 54-year-old assistant facility security officer, faced security concerns under Guideline F (Financial Considerations) due to significant unresolved debts totaling approximately $275,000, including a dismissed Chapter 13 bankruptcy. Despite some efforts to modify loans and resolve certain debts, the applicant's overall financial situation was deemed unstable and not under control, leading to the denial of her security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: $137 debt for cable service (1.e). $12,051 credit-card debt (1.f). $917 debt (1.l). $37,175 debt for recreational vehicle (1.n). $3,453 debt for kitchen remodeling (1.r). $1,709 debt for kitchen remodeling (1.s).
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: The applicant has numerous unresolved debts totaling approximately $275,000; The applicant's financial situation was not under control, with no substantial efforts to resolve debts after her bankruptcy was dismissed; The applicant did not inform creditors of the dismissal of her bankruptcy petition and took no action on many debts.
Why the Applicant Was Denied
- The applicant has numerous unresolved debts totaling approximately $275,000.
- The applicant's financial situation was not under control, with no substantial efforts to resolve debts after her bankruptcy was dismissed.
- The applicant did not inform creditors of the dismissal of her bankruptcy petition and took no action on many debts.
Conditions Referenced
- AG ¶ 19(a)appliedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)appliedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlWhile the applicant faced some circumstances beyond her control, she did not take adequate action to resolve her debts.
- AG ¶ 20(c)rejectedReceived or Receiving CounselingThe applicant received some financial counseling but her financial situation remained unstable.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay CreditorsThe applicant did not demonstrate a good-faith effort to resolve her debts.
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the AG.”
Procedural Posture
- SOR issuedJun 15, 2015
- Answer filedJul 2, 2015
- Hearing heldNov 17, 2015
- Decision dateFeb 22, 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 Stability and Responsibility in Security Clearance Cases.