Summary
The applicant, a 59-year-old security guard, faced security concerns under Guideline F due to a history of financial irresponsibility, including unpaid federal and state income taxes and a failed Chapter 13 bankruptcy plan. Despite efforts to manage his debts, the judge found insufficient evidence of a long-term change in financial behavior, leading to a denial of the security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant owes two unpaid medical bills, both placed for collection, for $220.00 and $232.00 (1.a). Applicant owes unpaid federal income taxes for tax years 1992-1999, totaling more than $27,000.00 (1.b). Applicant owes unpaid state income taxes totaling $2,515.66 for tax years 1988, 1990, and 1991 (1.c). Applicant filed a Chapter 13 bankruptcy petition in March 2003, which was later converted to a Chapter 7 case due to non-compliance with the payment plan (1.d). Applicant is currently delinquent on all monthly bills, including a car payment of $439.38 for a financed vehicle (1.e).
The judge denied the clearance. The government raised disqualifying conditions F1, F2, F3, F4, F5, F6. The judge applied mitigating conditions F3, F1, F2. The decision turned on the following: The applicant failed to demonstrate a good-faith effort to resolve his financial obligations; The applicant's financial problems are longstanding, with debts dating back to 1988 and 1992; The applicant's recent bankruptcy discharge does not indicate a change in financial responsibility.
Why the Applicant Was Denied
- The applicant failed to demonstrate a good-faith effort to resolve his financial obligations.
- The applicant's financial problems are longstanding, with debts dating back to 1988 and 1992.
- The applicant's recent bankruptcy discharge does not indicate a change in financial responsibility.
Conditions Referenced
- F1raisedFinancial Considerations
- F2raisedFinancial Considerations
- F3raisedFinancial Considerations
- F4raisedFinancial Considerations
- F5raisedFinancial Considerations
- F6raisedFinancial Considerations
- F3appliedFinancial ConsiderationsThe applicant received some credit for unemployment in 1986 and lack of full-time employment for several years.
- F1rejectedFinancial ConsiderationsThe applicant did not provide evidence of a realistic plan to become financially fit.
- F2rejectedFinancial ConsiderationsThe applicant's financial irresponsibility was evident despite the bankruptcy discharge.
Key Rule Quoted
“"It should be obvious that no one has a 'right' to a security clearance," and "the clearly consistent standard indicates that security clearance determinations should err, if they must, on the side of denials."”
Procedural Posture
- SOR issuedJan 15, 2004
- Answer filedFeb 12, 2004
- Hearing heldSep 2, 2004
- Decision dateFeb 3, 2005
Cite For
- Denial of Clearance Due to Longstanding Financial Irresponsibility
- Insufficient Evidence of Financial Rehabilitation Post-bankruptcy
- Impact of Unpaid Taxes on Security Clearance Eligibility