Summary
The applicant, a 47-year-old security guard, faced security concerns under Guideline F due to a history of ongoing financial problems, including a Chapter 7 bankruptcy and multiple unpaid debts. Despite some mitigating factors, the judge found that the applicant failed to demonstrate sufficient financial responsibility, leading to a denial of the security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant received a discharge of more than $26,000.00 in debt under Chapter 7 of the bankruptcy code (1.a). The debt of $239.00 is based on a revolving credit line, which has been placed for collection (1.b). The debt of $92.00 is based on telephone account, which has been placed for collection (1.c). The debt of $992.00 is based on a bank credit card account, which has been charged off (1.d). The debt of $4,356.00 is based on a bank credit card account, which has been charged off (1.e). The debt of $3,652 is based on a bank credit card account, which has been charged off (1.f). The debt of $1,622.00 is based on a medical account, which has been placed for collection (1.g). The debt of $190.00 is based on a dental account, which has been placed for collection (1.h). The debt of $27.00 is based on a telephone account, which has been charged off (1.i). The debt of $133.00 is based on a telephone account, which has been placed for collection (1.j). The debt of $85,801.00 is based on a balance due owed on a mortgage loan that was foreclosed upon in 2003 (1.k). A personal financial statement executed by Applicant in December 2003 showing he had a negative monthly net remainder of $297.00, which did not include repayment of the delinquent debts discussed above (1.l).
The judge denied the clearance. The government raised disqualifying conditions F.1. The judge applied mitigating conditions F.3, F.6. The decision turned on the following: The applicant has a history of significant unpaid debts and a Chapter 7 bankruptcy discharge; The applicant's financial problems are ongoing and demonstrate a lack of financial responsibility; The applicant failed to provide documentary proof of resolving any delinquent debts through a debt settlement program.
Why the Applicant Was Denied
- The applicant has a history of significant unpaid debts and a Chapter 7 bankruptcy discharge.
- The applicant's financial problems are ongoing and demonstrate a lack of financial responsibility.
- The applicant failed to provide documentary proof of resolving any delinquent debts through a debt settlement program.
Conditions Referenced
- F.1raisedFinancial Considerations
- F.3appliedFinancial ConsiderationsThe applicant's financial problems were largely due to a troubled marriage.
- F.6rejectedFinancial ConsiderationsThe applicant's efforts to resolve debts were not substantiated with documentary evidence.
Key Rule Quoted
“An individual who is financially overextended is at risk of having to engage in illegal or unethical acts to generate funds to meet financial obligations.”
Procedural Posture
- SOR issuedMay 25, 2004
- Answer filedJun 10, 2004
- Hearing heldOct 27, 2004
- Decision dateApr 25, 2005
Cite For
- Ongoing Financial Problems Under Guideline F
- Mitigating Conditions Related to Financial Issues
- Impact of Personal Circumstances on Financial Responsibility