Loading case…

Summary

The applicant, a 58-year-old male with a history of financial difficulties, faced security clearance denial under Guideline F due to unresolved debts. Despite acknowledging his financial issues and attributing them to personal hardships, he failed to provide sufficient evidence of debt resolution or a responsible plan to address his financial obligations, leading to doubts about his reliability and trustworthiness.

Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant admitted the debt in SOR ¶ 1.a ($11,795) and acknowledged it to the investigator. He explained to the investigator that the amount was alleged by a former landlord for damages and because Applicant had not removed all of his property from the premises. Applicant disputed the debt and told the investigator that he intended to take the landlord to court. Applicant did not provide any evidence as to his actions to resolve or dispute the debt. It remains unresolved (1.a). Applicant admitted the debt in SOR ¶ 1.b ($1,412). He explained to the investigator that the debt was incurred in 2015 after he lost his job and was sick. He was now employed and intended to pay this debt as soon as possible. He did not provide evidence that the debt was paid or resolved (1.b). Medical debts are alleged in SOR ¶¶1.c ($482), 1.d ($459), 1.g ($67), and 1.h ($63). He subsequently denied these debts in the SOR answer stating they had either been paid in full or removed from his credit report. No supporting documents were provided. They are unresolved (1.c). Medical debts are alleged in SOR ¶¶1.c ($482), 1.d ($459), 1.g ($67), and 1.h ($63). He subsequently denied these debts in the SOR answer stating they had either been paid in full or removed from his credit report. No supporting documents were provided. They are unresolved (1.d). Applicant acknowledged to the investigator that he owed the debt alleged in SOR ¶ 1.e (collection account for utility bill-$431) for an electric bill that he could not pay when he lost his job in 2015. He intended to pay the bill as soon as possible. In his SOR answer, he denied the debt stating that it either had been paid in full or had been removed from his credit report. He did not provide any documents to support his claim. The debt is unresolved (1.e). Applicant stated that he arranged a settlement agreement with the creditor for the debt in SOR ¶ 1.f ($78). The supporting documents show that an agreement was reached and Applicant paid $701 towards the original amount of $779. It appears the remaining balance alleged in SOR 1.f was the amount the creditor agreed to forgive. In Applicant’s interrogatory response, he stated that he had followed up with the creditor for the debt and was told his credit report would be updated regarding it (1.f). Medical debts are alleged in SOR ¶¶1.c ($482), 1.d ($459), 1.g ($67), and 1.h ($63). He subsequently denied these debts in the SOR answer stating they had either been paid in full or removed from his credit report. No supporting documents were provided. They are unresolved (1.g). Medical debts are alleged in SOR ¶¶1.c ($482), 1.d ($459), 1.g ($67), and 1.h ($63). He subsequently denied these debts in the SOR answer stating they had either been paid in full or removed from his credit report. No supporting documents were provided. They are unresolved (1.h). Applicant acknowledged to the investigator that he owed the debt alleged in SOR ¶ 1.i ($7,195), which was for a personal loan he obtained in 2013 or 2014. He was unable to pay it when he lost his job. He told the investigator that he planned on contacting the creditor and negotiating a settlement agreement and pay it as soon as he could. In his SOR answer he denied the debt stating that it either had been paid in full or had been removed from his credit report. He did not provide any documents to support his claim. The debt is unresolved (1.i). During Applicant’s background interview by a government investigator, he acknowledged owing the debt in SOR ¶ 1.j ($18,636) for a vehicle he purchased in August 2015 that was later repossessed in December 2015. He told the investigator that the debt should be charged off and he does not plan on paying it because he returned the vehicle over five years ago. This debt is unresolved (1.j).

The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(b), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(d). The decision turned on the following: The applicant failed to provide evidence of resolving his numerous delinquent debts; He admitted to debts but did not intend to repay certain debts, raising concerns about his judgment and reliability; The applicant did not demonstrate a good-faith effort to address his financial obligations.

Why the Applicant Was Denied

• The applicant failed to provide evidence of resolving his numerous delinquent debts.
• He admitted to debts but did not intend to repay certain debts, raising concerns about his judgment and reliability.
• The applicant did not demonstrate a good-faith effort to address his financial obligations.

Conditions Referenced

Key Rule Quoted

“Eligibility for access to classified information is denied.”

Procedural Posture

• SOR issuedOct 25, 2021
• Answer filedJan 15, 2022
• Hearing held—Decided on the written record.
• Decision dateJun 16, 2022

Cite For

• Failure to Mitigate Financial Concerns Under Guideline F
• Impact of Unresolved Debts on Security Clearance Eligibility
• Importance of Providing Evidence for Debt Resolution Efforts