Summary
The applicant, a 37-year-old defense contractor, faced issues under Guideline F due to a history of financial difficulties, including multiple overdue debts and a recent bankruptcy filing. The judge found that the applicant failed to demonstrate financial responsibility or a stable outlook, leading to the denial of his security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: This overdue debt to Creditor 1 is listed in the SOR in the amount of $447. Applicant admitted that this debt is due and owing, and I find that at this time he owes the entire amount stated (1.a). This overdue debt to Creditor 2 is listed in the SOR in the amount of $12,829. Applicant admitted that this debt is due and owing, and I find that at this time he owes the entire amount stated (1.b). This overdue debt to Creditor 3 is in the amount of $446. While Applicant admitted that this debt is due and owing, I find that this debt is the same as that cited in allegation 1.a., because the creditor is the same as that listed in 1.a. and the amount is $1 less. Therefore, Applicant does not owe this debt as alleged in 1.c (1.c). This overdue debt to Creditor 4 is listed in the SOR in the amount of $447. Applicant admitted that this debt is due and owing, and I find that at this time he owes the entire amount stated (1.d). This overdue debt to Creditor 5 is listed in the SOR in the amount of $972. Applicant admitted that this debt is due and owing, and I find that at this time he owes the entire amount stated (1.e). This overdue debt to Creditor 6 is listed in the SOR in the amount of $1,601. Applicant admitted that this debt is due and owing, and I find that at this time he owes the entire amount stated (1.f). This overdue debt to Creditor 7 is listed in the SOR in the amount of $389. Applicant admitted that this debt is due and owing, and I find that at this time he owes the entire amount stated (1.g). This overdue debt to Creditor 8 is listed in the SOR in the amount of $1,638. Applicant admitted that this debt is due and owing, and I find that at this time he owes the entire amount stated (1.h). This overdue debt to Creditor 9 is listed in the SOR in the amount of $385. Applicant admitted that this debt is due and owing, and I find that at this time he owes the entire amount stated (1.i). This overdue debt to Creditor 10 is listed in the SOR in the amount of $6,455. Applicant admitted that this debt is due and owing, and I find that at this time he owes the entire amount stated (1.j). The Government alleges that Applicant has a net remainder of $43 a month, yet he has made no attempt to make any payments on his overdue debts. I find that Applicant has made no payments on any of his overdue debts (1.k).
The judge denied the clearance. The government raised disqualifying conditions E2.A6.1.2.1, E2.A6.1.2.3. The decision turned on the following: The applicant has a history of financial difficulties, including ten overdue debts; The applicant filed for bankruptcy, but no debts have been discharged or accepted by the Bankruptcy Court; The applicant made no attempts to pay overdue debts despite having a net remainder of $43 a month.
Why the Applicant Was Denied
- The applicant has a history of financial difficulties, including ten overdue debts.
- The applicant filed for bankruptcy, but no debts have been discharged or accepted by the Bankruptcy Court.
- The applicant made no attempts to pay overdue debts despite having a net remainder of $43 a month.
Conditions Referenced
- E2.A6.1.2.1appliedInability to Satisfy Debts
- E2.A6.1.2.3appliedHistory of Not Meeting Financial Obligations
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 issuedFeb 16, 2006
- Answer filedMar 15, 2006Applicant responded in writing to the SOR allegations.
- Hearing heldMay 23, 2006Hearing conducted with no witnesses called.
- Decision dateJun 26, 2006
Cite For
- Denial of Security Clearance Due to Financial Irresponsibility
- Impact of Bankruptcy Filings on Security Clearance Eligibility
- Failure to Demonstrate Financial Stability as a Disqualifying Factor