Summary
A 49-year-old federal contractor and U.S. Army veteran was denied a security clearance under Guideline F, Financial Considerations, due to a history of unresolved financial issues. The applicant had filed for Chapter 13 bankruptcy protection in 1998, with debts discharged, and again in 2007, which was dismissed in 2012 for nonpayment. At the time of the review, the applicant had 16 delinquent accounts totaling approximately $31,368.
Specific unresolved debts included a $9,356 deficiency balance from a car repossession, a $5,484 deficiency balance from a daughter's car repossession, and several credit card and consumer debts totaling $866, $510, $1,003, $1,588, and $1,863. While some debts were resolved, such as a $1,901 payday loan, a $1,120 consumer debt, a $606 credit card debt, a $634 debt, a $4,157 consumer debt (cancelled by the creditor), a $966 consumer debt, a $485 consumer debt, a $466 debt, and a $363 debt, the remaining unresolved obligations were significant.
The denial was based on the applicant's long history of financial difficulties, including the two bankruptcies and the 16 delinquent debts. Seven of these debts remained unpaid and were not resolved in a timely manner. The decision concluded that the applicant's financial problems were not under control, and there was no meaningful track record of debt management, raising concerns about reliability and trustworthiness.
Why the Applicant Was Denied
- The applicant has a long history of financial difficulties, including two Chapter 13 bankruptcies and 16 delinquent debts.
- Seven of the debts remain unpaid, and the applicant did not resolve them in a timely manner.
- The applicant's financial problems are not under control, and there is no evidence of a meaningful track record of debt management.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedBehavior Happened Long Ago or InfrequentlyThe applicant's debts are recent and ongoing.
- AG ¶ 20(b)rejectedConditions Beyond the Person's ControlThe applicant admitted to using credit unwisely.
- AG ¶ 20(c)rejectedReceived Financial CounselingThe applicant's financial difficulties have persisted for almost 25 years.
- AG ¶ 20(d)appliedGood-faith Effort to Repay DebtsOnly applies to some resolved debts.
- AG ¶ 20(e)rejectedReasonable Basis to Dispute DebtsThe applicant admitted all debts without providing evidence for disputes.
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedApr 6, 2021
- Answer filedJun 23, 2021
- Hearing heldAug 30, 2022via video teleconferencing
- Decision dateJan 18, 2023
Cite For
- Denial of Security Clearance Due to Unresolved Financial Issues Under Guideline F
- Impact of Financial Mismanagement on Trustworthiness
- Consideration of Whole-person Factors in Security Clearance Decisions