Summary
A 41-year-old security guard for a defense contractor was denied a security clearance under Guideline F (Financial Considerations) due to a history of financial irresponsibility. The Statement of Reasons detailed six specific delinquent debts: $4,622 owed to Finance Center Credit Union, $3,528 to Duvera, $91 to Credit Management, $548 to Household Services Bank, $2,304 to Bank of New York, and $1,201 in past due property taxes. These issues raised disqualifying conditions related to a pattern of financial irresponsibility and an inability or unwillingness to satisfy debts.
While mitigating conditions concerning the debt not being recent, the circumstances being beyond the applicant's control, and the applicant having initiated a good-faith effort to resolve the debt were considered, they were ultimately not sufficient. The administrative judge found that the applicant had a consistent history of failing to meet financial obligations, evidenced by two Chapter 7 bankruptcies and a dismissed Chapter 13 bankruptcy.
Crucially, the applicant did not demonstrate a good-faith effort to resolve the six delinquent debts and provided no evidence to support claims of debt discharge or to dispute the validity of other debts. Consequently, the applicant failed to mitigate the financial concerns, and the security clearance was denied.
Why the Applicant Was Denied
- The applicant has a history of not meeting financial obligations, including two Chapter 7 bankruptcies and a dismissed Chapter 13 bankruptcy.
- He has six delinquent debts and did not demonstrate a good-faith effort to resolve them.
- The applicant presented no evidence to support his claims regarding the discharge of certain debts or to challenge the validity of others.
Conditions Referenced
- E2.A6.1.2.1raisedA History of Not Meeting Financial Obligations
- E2.A6.1.2.3raisedAn Inability or Unwillingness to Satisfy Debts
- E2.A6.1.3.1rejectedThe Behavior Was Not RecentThe applicant's debts are ongoing and not isolated.
- E2.A6.1.3.2rejectedIt Was an Isolated IncidentThe applicant has a pattern of financial irresponsibility.
- E2.A6.1.3.6rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant did not present evidence of any efforts to resolve his debts.
Key Rule Quoted
“"Any doubt as to whether access to classified information is clearly consistent with national security will be resolved in favor of the national security."”
Procedural Posture
- SOR issuedAug 18, 2006
- Answer filedAug 31, 2006
- Hearing held—Applicant elected to have the matter decided on the written record.
- Decision dateFeb 26, 2007
Cite For
- Denial of Security Clearance Due to Financial Irresponsibility Under Guideline F
- Impact of Multiple Bankruptcies on Security Clearance Eligibility
- Failure to Demonstrate Good-faith Efforts to Resolve Debts as a Basis for Denial.