Summary
A 44-year-old defense contractor employee was denied a security clearance under Guideline F, Financial Considerations, due to a history of financial irresponsibility. The applicant had filed for bankruptcy twice and accumulated multiple delinquent debts totaling approximately $33,442.
Specific allegations included a $1,975 deficiency judgment from an automobile repossession, a $20,127 collection account for a mobile home loan, and several other accounts turned over for collection or charged off, ranging from $73.67 to $3,452. These financial issues raised disqualifying conditions related to financial irresponsibility.
Despite obtaining suitable employment after a layoff, the applicant failed to demonstrate a good-faith effort to resolve her debts. Although various mitigating conditions were considered, the decision concluded that security concerns were not mitigated, primarily because the applicant continued to incur significant delinquent debts after her first bankruptcy discharge and did not attempt to pay her debts before her second bankruptcy filing.
Why the Applicant Was Denied
- The applicant has a history of financial irresponsibility, including two bankruptcy filings.
- After her first bankruptcy discharge, the applicant continued to incur delinquent debts totaling approximately $33,442.
- The applicant did not demonstrate a good-faith effort to pay her debts before filing for bankruptcy a second time.
Conditions Referenced
- E2.A6.1.2.1raisedA History of Not Meeting Financial Obligations
- E2.A6.1.2.3raisedInability or Unwillingness to Satisfy Debts
- E2.A6.1.3.3appliedThe Conditions That Resulted in the Behavior Were Largely Beyond the Person's ControlThe applicant was laid off in July 2002, which contributed to her financial difficulties.
- E2.A6.1.3.1rejectedThe Behavior Was Not Recent
- E2.A6.1.3.2rejectedIt Was an Isolated Incident
- E2.A6.1.3.4rejectedThe Person Has Received or Is Receiving Counseling for the Problem and There Are Clear Indications That the Problem Is Being Resolved or Is Under ControlThe applicant sought counseling but did not enroll.
- E2.A6.1.3.6rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant did not make a good-faith effort towards paying her delinquent debts before resorting to bankruptcy.
Key Rule Quoted
“The clearly consistent standard indicates that security clearance determinations should err, if they must, on the side of denials.”
Procedural Posture
- SOR issuedJun 20, 2005
- Answer filedJul 14, 2005Applicant elected to have the case decided on the written record.
- Hearing held—No hearing; decided on the written record.
- Decision dateFeb 28, 2006
Cite For
- Denial of Security Clearance Due to Financial Irresponsibility Under Guideline F
- Failure to Demonstrate Good-faith Effort to Resolve Debts
- Impact of Multiple Bankruptcy Filings on Security Clearance Eligibility