Loading case…

Summary

The applicant, a 40-year-old with a history of financial difficulties, faced security concerns under Guideline F due to 20 delinquent debts totaling approximately $29,465. Despite attributing her financial issues to her husband's lack of contribution and attempting to file for Chapter 13 bankruptcy, the judge found insufficient evidence of responsible financial management or resolution of debts, leading to a denial of her security clearance.

Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant moved in with her mother after she separated from her husband, and they share the rent. She returned her 2012 model car that she had purchased in 2013 to the dealer because she could not afford the loan payments (1.a). The debt in SOR ¶ 1.b ($8,443) is for a loan Applicant cosigned for her son to purchase a car. Applicant stated her son was going to make $260 monthly payments on the debt. She did not provide documents to show he is making payments. The debt is unresolved (1.b). Applicant admitted the debts in SOR ¶¶ 1.d ($806) and 1.e ($806) and indicated in her answer to the SOR that she was making $80 and $86 payments respectively. At her hearing, she stated she made a couple payments, but could not afford to continue the payments. No proof was provided regarding the payments she indicated she made (1.d). Applicant indicated that she paid and resolved the debts in SOR ¶¶ 1.i ($234), 1.j ($234), 1.k ($172), and 1.l ($111) with her 2013 income tax refund. She was given an opportunity to provide supporting documents to show the debts were paid. She did not provide documents to show she resolved these debts (1.i). Applicant stated that the debts in SOR ¶¶ 1.m ($66) and 1.q ($677) are to the same creditor. She stated that she paid the debt in SOR ¶ 1.m, and her husband took over payment of the debt in SOR ¶ 1.q. She did not provide supporting documents to show the debts are paid or being paid (1.m). Applicant disputes the debt in SOR ¶ 1.t ($583) because she does not recognize the creditor. She did not provide information as to what action she has taken to dispute it. None of the remaining alleged debts are resolved (1.t).

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(d), AG ¶ 20(e). The decision turned on the following: Applicant has 20 unresolved delinquent debts totaling approximately $29,465; Applicant's financial problems were attributed to her husband's refusal to contribute, but she did not demonstrate responsible actions to resolve her debts; Applicant's previous bankruptcy in 2009 and current financial situation raised concerns about her reliability and trustworthiness.

Why the Applicant Was Denied

• Applicant has 20 unresolved delinquent debts totaling approximately $29,465.
• Applicant's financial problems were attributed to her husband's refusal to contribute, but she did not demonstrate responsible actions to resolve her debts.
• Applicant's previous bankruptcy in 2009 and current financial situation raised concerns about her reliability and trustworthiness.

Conditions Referenced

Key Rule Quoted

“Failure or inability to live within one’s means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual’s reliability, trustworthiness and ability to protect classified information.”

Procedural Posture

• SOR issuedJan 13, 2015
• Answer filedFeb 5, 2015
• Hearing heldJun 24, 2015
• Decision dateJul 9, 2015

Cite For

• Insufficient Evidence of Financial Responsibility Under Guideline F
• Impact of Unresolved Debts on Security Clearance Eligibility
• Consideration of Personal Circumstances in Financial Matters