Summary
A 52-year-old female defense contractor employee was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The denial stemmed from her failure to resolve significant debts and her history of financial mismanagement, which included a dismissed Chapter 13 bankruptcy.
Specifically, the applicant was indebted to a collection agency for $9,571, a national credit card company for $2,087 (owed since November 1995), and a bank for $821, which was 120 days past due as of November 2000. She also had unresolved debts with a satellite television company and an automobile financing company for a charged-off account following an involuntary repossession in July 1995.
The judge found that the applicant's failure to disclose these delinquent debts on her security clearance application, coupled with her lack of effort to resolve her financial issues—evidenced by the dismissal of her Chapter 13 bankruptcy due to non-payment—raised serious doubts about her trustworthiness, leading to the denial of her security clearance.
Why the Applicant Was Denied
- Applicant failed to resolve significant debts totaling over $12,000, including those predating her bankruptcy filing.
- The bankruptcy court dismissed her Chapter 13 case due to non-payment, indicating a lack of commitment to resolving her debts.
- Applicant provided false information on her security clearance application by denying delinquent debts.
Conditions Referenced
- E2.A6.1.2.1raisedA History of Not Meeting Financial Considerations
- E2.A6.1.2.3raisedInability or Unwillingness to Satisfy Debts
- E2.A5.1.2.2raisedThe Deliberate Omission, Concealment, or Falsification of Relevant and Material Facts
- E2.A6.1.3.3rejectedThe Conditions That Resulted in the Behavior Were Largely Beyond the Person's ControlWhile the applicant's layoff contributed to her financial issues, it did not mitigate her ongoing failure to resolve debts.
- E2.A6.1.3.6rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant did not demonstrate a consistent effort to resolve her debts, particularly after her bankruptcy dismissal.
Key Rule Quoted
“any doubt as to whether access to classified information is clearly consistent with national interest will be resolved in favor of national security.”
Procedural Posture
- SOR issuedMay 31, 2002
- Answer filedJun 25, 2002Requested decision on the written record.
- Hearing held—No hearing; decision based on written record.
- Decision dateMar 5, 2003
Cite For
- Denial of Security Clearance Due to Unresolved Financial Issues Under Guideline F
- Failure to Disclose Delinquent Debts on Security Clearance Application Under Guideline E
- Impact of Dismissed Bankruptcy on Security Clearance Eligibility