Summary
A 55-year-old systems analyst with a history of financial difficulties, including two Chapter 7 bankruptcies in 1996 and 2004, faced security clearance denial under Guideline F due to significant delinquent debts and failure to meet financial obligations. The applicant's financial issues stemmed from personal circumstances, including divorce and unemployment, but he did not successfully mitigate the security concerns related to his unpaid state and federal taxes.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Civil judgment $1,344 (1.a). State tax lien (2000) $3,551 (1.b). State tax lien (1995) $456 (1.c). State tax lien (1995) $2,550 (1.d). Cable $750 (1.e). Financing Co. $1,244 (1.f). Towing Service $960 (1.g). Bank $244 (1.h). Bank $684 (1.i). Credit card $171 (1.j). Car $8,455 (1.k). Delinquent State taxes (1992-1999) $4,604.00 (1.l). State income tax not filed (2000) (1.m). Delinquent IRS tax (1994) $840 (1.n). Delinquent IRS tax (1995) $1,090 (1.o). Delinquent IRS tax (1996) $600 (1.p). Delinquent IRS tax (1997) $3,730 (1.q). Delinquent IRS tax (1998) $8,538 (1.r). Delinquent IRS tax (1999) $8,336 (1.s).
The judge denied the clearance. The government raised disqualifying conditions E2.A6.1.2.1, E2.A6.1.2.3. The judge applied mitigating conditions E2.A6.1.3.3, E2.A6.1.3.1, E2.A6.1.3.2, E2.A6.1.3.6. The decision turned on the following: The applicant has a history of not meeting financial obligations, including two Chapter 7 bankruptcies; He has significant delinquent debts, including unpaid state and federal taxes; The applicant failed to demonstrate a good-faith effort to resolve his tax debts.
Why the Applicant Was Denied
- The applicant has a history of not meeting financial obligations, including two Chapter 7 bankruptcies.
- He has significant delinquent debts, including unpaid state and federal taxes.
- The applicant failed to demonstrate a good-faith effort to resolve his tax debts.
Conditions Referenced
- E2.A6.1.2.1raisedA History of Not Meeting Financial Obligations
- E2.A6.1.2.3raisedInability or Unwillingness to Satisfy Debts
- E2.A6.1.3.3appliedConditions That Resulted in the Behavior Were Largely Beyond the Person's Control
- E2.A6.1.3.1rejectedThe Behavior Was Not Recent
- E2.A6.1.3.2rejectedIt Was an Isolated Incident
- E2.A6.1.3.6rejectedThe Individual Initiated a Good-faith Effort to Repay Over Creditors or Otherwise Resolve Debts
Key Rule Quoted
“A security concern exists when a person has significant delinquent debts.”
Procedural Posture
- SOR issuedDec 10, 2004
- Answer filedDec 21, 2004
- Hearing heldMay 26, 2005
- Decision dateOct 13, 2005
Cite For
- Denial of Clearance Due to Significant Delinquent Debts Under Guideline F
- Impact of Personal Circumstances on Financial Obligations
- Failure to Demonstrate Good-faith Efforts to Resolve Debts