Summary
A 34-year-old single mother was denied a security clearance under Guideline F (Financial Considerations) due to a history of ongoing financial difficulties. The applicant admitted to 17 debts totaling nearly $30,000, with most falling past due between 1999 and 2005. These included nearly $22,000 for two automobile repossessions in mid-2001, as well as debts for routine living expenses such as telephone, electric, minor medical, and satellite television services. Three of these debts were less than $100, and another five were less than $200.
The applicant's financial struggles dated back to at least 1990, when she had her first child. While some difficulties were attributed to circumstances beyond her control, including parental illnesses and deaths, divorce, and three periods of unemployment after leaving the U.S. Army in 2000, others were due to untimely or incomplete pursuit of child support. Her tight budget prevented her from paying off even small debts, leading to two judgments for debts under $100 in 2004 and 2005.
All 17 debts were included in her March 2006 Chapter 7 bankruptcy petition, which was pending at the time of the hearing. Despite the bankruptcy filing, the judge found that her financial issues were ongoing and not sufficiently mitigated, leading to the denial of her clearance.
Why the Applicant Was Denied
- The applicant has a history of financial difficulties dating back to at least 1990.
- She admitted to 17 debts totaling nearly $30,000, with most debts incurred between 1999 and 2005.
- The applicant's financial difficulties were both recent and not isolated, indicating a pattern of mismanagement.
Conditions Referenced
- E2.A6.1.2.1raisedA History of Not Meeting Financial Obligations
- E2.A6.1.2.3raisedInability or Unwillingness to Satisfy Debts
- E2.A6.1.3.1rejectedThe Conditions That Resulted in the Financial Problems Were Largely Beyond the Person's ControlWhile the applicant attributed her financial difficulties to circumstances beyond her control, the judge found lingering concerns regarding her financial management.
- E2.A6.1.3.2appliedThe Person Has Received or Is Receiving Counseling for the Financial Problems
Key Rule Quoted
“The government has a compelling interest in ensuring each Applicant possesses the requisite judgement, reliability, and trustworthiness of those who must protect national interests as their own.”
Procedural Posture
- SOR issuedDec 30, 2005
- Answer filedJan 26, 2006
- Hearing heldApr 7, 2006
- Decision dateJun 20, 2006
Cite For
- Denial of Clearance Due to Ongoing Financial Difficulties Under Guideline F
- Impact of Historical Financial Mismanagement on Security Clearance Eligibility
- Consideration of Pending Bankruptcy in Security Clearance Decisions