Summary
A 57-year-old maintenance technician was denied a security clearance under Guideline F, Financial Considerations, due to a history of financial problems. The Statement of Reasons detailed multiple issues, including a Chapter 13 bankruptcy petition dismissed in 1996, and several charged-off accounts from September 2001 that remained unsatisfied as of September 13, 2004.
Additional concerns included a collection account unsatisfied as of July 13, 2004, another collection account unpaid as of September 2004, and a bad debt charged off in September 2001 and still unpaid by September 13, 2004. The applicant also had a judgment against him for approximately $6,452.07, which he had agreed to pay at $200 per month.
The judge determined that the applicant's long-standing financial issues raised security concerns that were not mitigated. The denial was based on his history of delinquencies and bad debts, failure to maintain payments on his Chapter 13 bankruptcy, and the fact that his Chapter 7 bankruptcy did not demonstrate financial reform. Furthermore, he did not provide evidence of seeking financial counseling or a plan to address his debts.
Why the Applicant Was Denied
- The applicant has a history of financial delinquencies and bad debts.
- He failed to maintain payments on his Chapter 13 bankruptcy, leading to its dismissal.
- The applicant's Chapter 7 bankruptcy did not demonstrate a track record of financial reform.
- He did not provide evidence of seeking financial counseling or a plan to address his debts.
Conditions Referenced
- E2.A6.1.2.1raisedFinancial Considerations - Inability or Unwillingness to Satisfy Debts
- E2.A6.1.2.3raisedFinancial Considerations - Financial Problems Raise Security Concerns
- E2.A6.1.3.1rejectedFinancial Considerations - the Behavior Was Not Recent
- E2.A6.1.3.2rejectedFinancial Considerations - the Applicant Has a Good Track Record of Financial Responsibility
- E2.A6.1.3.3appliedFinancial Considerations - the Applicant's Financial Problems Were Due to Circumstances Beyond His Control
- E2.A6.1.3.4rejectedFinancial Considerations - the Applicant Has Sought and Received Counseling for Financial Problems
- E2.A6.1.3.6rejectedFinancial Considerations - the Applicant Has a Plan to Resolve Debts and Avoid Further Indebtedness
Key Rule Quoted
“A discharge in bankruptcy is a permissible way to acquire a clean financial slate, it is not a substitute for evidence of a demonstrated track record of financial reform.”
Procedural Posture
- SOR issuedNov 18, 2004
- Answer filedDec 21, 2004
- Hearing heldAug 17, 2005
- Decision dateSep 28, 2005
Cite For
- Denial of Security Clearance Due to Unresolved Financial Delinquencies
- Impact of Bankruptcy on Security Clearance Eligibility
- Failure to Demonstrate Financial Responsibility as a Disqualifying Factor Under Guideline F