Summary
A 46-year-old marine electrician was denied a security clearance under Guideline F, Financial Considerations, due to significant delinquent debts and a history of bankruptcy. The Statement of Reasons alleged that the applicant began incurring over $11,000 in delinquent debts in late 2008, including three credit card debts totaling $10,612 and a $1,054 medical debt from 2009. No efforts were made to resolve these debts until the applicant filed for Chapter 13 bankruptcy in 2015.
The decision highlighted that the applicant's financial irresponsibility persisted despite consistent employment since 2008, even incurring additional debt for a new car in 2014. Disqualifying conditions F.19(a) and F.19(c) were raised, while mitigating conditions F.20(a), F.20(b), F.20(c), F.20(d), and F.20(e) were considered.
Ultimately, the judge found insufficient evidence of responsible financial management or mitigation of security concerns. The applicant failed to demonstrate substantial progress in resolving financial issues or a change in behavior, leading to the denial of the security clearance.
Why the Applicant Was Denied
- Applicant incurred over $11,000 in delinquent debts since 2008 without making efforts to resolve them until filing for bankruptcy in 2015.
- Applicant's financial irresponsibility persisted despite regular employment since 2008, including incurring additional debt for a new car in 2014.
- Insufficient evidence was provided to demonstrate substantial progress in resolving financial issues or changes in behavior.
Conditions Referenced
- F.19(a)raisedInability or Unwillingness to Satisfy Debts
- F.19(c)raisedA History of Not Meeting Financial Obligations
- F.20(a)rejectedBehavior Happened so Long Ago, Was Infrequent, or Occurred Under Circumstances Unlikely to RecurApplicant's financial issues are ongoing and significant.
- F.20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlApplicant voluntarily incurred the debts and was employed during the delinquency period.
- F.20(c)rejectedReceived or Is Receiving Counseling for the ProblemRecent bankruptcy credit counseling does not demonstrate substantial progress toward debt resolution.
- F.20(d)rejectedInitiated a Good-faith Effort to Repay Overdue CreditorsBankruptcy filing does not equate to a good-faith effort to resolve debts.
- F.20(e)notedReasonable Basis to Dispute the Legitimacy of the Past-due Debt
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 issuedFeb 3, 2015
- Answer filedFeb 25, 2015
- Hearing heldAug 11, 2015
- Decision dateFeb 29, 2016
Cite For
- Insufficient Evidence of Financial Responsibility Under Guideline F
- Ongoing Financial Delinquencies as a Disqualifying Factor
- Impact of Bankruptcy on Security Clearance Eligibility