Summary
The applicant, a 45-year-old defense contractor employee, faced security clearance denial due to significant delinquent debts totaling $31,063, despite multiple bankruptcy filings. He failed to provide sufficient evidence or documentation to mitigate the financial concerns raised under Guideline F, leading to the denial of his clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: a balance owed after a repossession of his automobile in the amount of $16,547 (1.d). a collection account in the amount of $11,353 (1.e). a civil judgement in the amount of $1,250 (1.f). collection account in the amount of $158.00 (1.g). a civil judgement card in the amount of $125 (1.h). charged off collection account in the amount of $558 (1.i). charged off account in the amount of $41 (1.j). collection account in the amount of $998 (1.k). collection account in the amount of $33 (1.l).
The judge denied the clearance. The government raised disqualifying conditions E2.A6.1.2.1, E2.A6.1.2.3. The judge applied mitigating conditions E2.A6.1.3.1, E2.A6.1.3.2, E2.A6.1.3.3, E2.A6.1.3.4, E2.A6.1.3.6. The decision turned on the following: The applicant has a history of not meeting financial obligations, leading to numerous judgments and delinquent debts; He did not provide any evidence of a structured repayment plan or good-faith efforts to resolve his debts; The applicant's financial difficulties were not recent and he did not demonstrate that they were beyond his control.
Why the Applicant Was Denied
- The applicant has a history of not meeting financial obligations, leading to numerous judgments and delinquent debts.
- He did not provide any evidence of a structured repayment plan or good-faith efforts to resolve his debts.
- The applicant's financial difficulties were not recent and he did not demonstrate that they were beyond his control.
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 Behavior Is Not RecentThe applicant's debts remain unpaid over a period of years.
- E2.A6.1.3.2rejectedIt Was an Isolated IncidentThe applicant has a long history of financial issues.
- E2.A6.1.3.3rejectedThe Conditions That Resulted in the Behavior Were Largely Beyond the Person's ControlThe applicant did not provide evidence of circumstances beyond his control.
- 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 did not receive financial counseling or establish a debt repayment program.
- E2.A6.1.3.6rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant did not provide proof of payment or a structured plan to resolve his debts.
Key Rule Quoted
“A person who seeks access to classified information enters into a fiduciary relationship with the government predicated upon trust and confidence.”
Procedural Posture
- SOR issuedApr 18, 2006
- Answer filedMay 15, 2006Applicant elected to have the case decided on the written record.
- Hearing held—No hearing was held.
- Decision dateNov 14, 2006
Cite For
- Financial Considerations Leading to Security Clearance Denial
- Impact of Multiple Bankruptcy Filings on Security Clearance Eligibility
- Failure to Provide Evidence of Debt Resolution Efforts in Security Clearance Cases