Summary
A 41-year-old assembly technician was denied a security clearance under Guideline F (Financial Considerations) due to a history of financial difficulties, including multiple bankruptcies and unresolved debts. The applicant had previously held a Secret clearance and maintained a long tenure in his current job.
The Statement of Reasons cited three bankruptcies: a Chapter 13 petition filed in March 2006, a Chapter 7 discharge in August 2002, and another bankruptcy discharge in October 1992. Additionally, the applicant had an account for $8,952 that was over 120 days past due, a $70 account placed for collection, and a $787 debt over 60 days past due.
Despite the application of some mitigating conditions, the clearance was denied because the applicant demonstrated a history of not meeting financial obligations and was deemed currently unable or unwilling to satisfy his debts. The applicant failed to establish that his debts were being resolved or that he had made a good-faith effort to resolve them, with ongoing financial issues and advice to convert to Chapter 7 bankruptcy further supporting the denial.
Why the Applicant Was Denied
- Applicant has a history of not meeting financial obligations, including multiple bankruptcies.
- Applicant is currently unable or unwilling to satisfy his debts, as evidenced by ongoing financial issues and advice to convert to Chapter 7 bankruptcy.
- Applicant did not establish that his debts are being resolved or that he has made a good-faith effort to resolve his debts.
Conditions Referenced
- E2.A6.1.2.1raisedFinancial Considerations - History of Not Meeting Financial Obligations
- E2.A6.1.2.3raisedFinancial Considerations - Unable or Unwilling to Satisfy Debts
- E2.A6.1.3.3appliedFinancial Considerations - Financial Situation Largely Beyond Applicant's ControlSome financial difficulties arose due to unforeseen medical debts.
- E2.A6.1.3.4rejectedFinancial Considerations - Received Counseling and Indications of ResolutionIt is unclear whether the applicant ever received credit counseling.
- E2.A6.1.3.6rejectedFinancial Considerations - Good-faith Effort to Repay CreditorsApplicant has not demonstrated a good-faith effort to resolve debts.
Key Rule Quoted
“An applicant who is financially overextended is at risk of having to engage in illegal acts to generate funds.”
Procedural Posture
- SOR issuedApr 27, 2006
- Answer filedMay 25, 2006
- Hearing heldNov 15, 2006Record kept open until November 27, 2006.
- Decision dateDec 28, 2006
Cite For
- Denial of Security Clearance Due to Financial Considerations Under Guideline F
- Impact of Multiple Bankruptcies on Security Clearance Eligibility
- Failure to Demonstrate Mitigation of Financial Issues in Security Clearance Cases