Summary
A 33-year-old female defense contractor employee was denied a security clearance under Guideline F (Financial Considerations) due to a history of financial irresponsibility. The Statement of Reasons detailed several concerns, including a Chapter 7 bankruptcy filing on December 3, 1998, listing $49,356.00 in debts.
Additionally, the applicant owed approximately $29,000.00 in federally subsidized student loans to the U.S. Department of Education, which had been placed for collection. She also had a delinquent bank account with an outstanding balance of approximately $3,345.00. A Personal Financial Statement submitted on August 15, 2001, indicated a negative monthly balance of approximately $295.00 after current expenses, not including payments for the student or bank loans.
Despite making payments on a recently purchased vehicle, the applicant did not demonstrate a serious commitment to repaying her other financial obligations. The decision concluded that her history of failing to pay debts and insufficient evidence of intent to repay creditors raised doubts about her judgment, reliability, and trustworthiness, leading to the denial of her security clearance.
Why the Applicant Was Denied
- The applicant has a history of failing to pay her debts, including student loans and a bank loan.
- She did not present sufficient evidence of a serious intent to repay her creditors.
- Her financial irresponsibility raises doubts about her judgment, reliability, and trustworthiness.
Conditions Referenced
- F1raisedA History of Not Meeting Financial Obligations
- F3raisedInability or Unwillingness to Satisfy Debts
Procedural Posture
- SOR issuedSep 27, 2001
- Answer filedOct 19, 2001Applicant admitted all allegations.
- Hearing held—Case decided on written record.
- Decision dateMar 22, 2002
Cite For
- Financial Irresponsibility Under Guideline F
- Insufficient Evidence of Intent to Repay Debts
- Impact of Financial Issues on Security Clearance Eligibility