Summary
The applicant, a former Marine Corps Sergeant, sought a security clearance under Guideline F due to significant financial issues, including multiple charged-off debts and federal tax liens totaling over $74,000. Despite her claims of financial hardship due to unemployment and a difficult divorce, the judge found insufficient evidence of responsible debt management or proactive efforts to resolve her financial obligations, leading to a denial of her security clearance application.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: a $15,790 car loan that was charged off in April 2014 (1.a). a $15,538 car loan that was charged off in August 2016 (1.b). a $2,998 apartment rental debt placed for collection in June 2014 (1.c). a $2,134 apartment rental debt placed for collection in November 2013 (1.d). a $1,202 cell phone account placed for collection in August 2013 (1.e). a $797 cell phone account that was more than 120 days past due as of September 2015 (1.f). a $657 cable television account placed for collection in April 2014 (1.g). a $603 satellite television account placed for collection in 2011 (1.h). a $500 apartment debt placed for collection in June 2014 (1.i). a $150 medical debt that became delinquent in December 2013 (1.j). a $7,014 federal tax lien entered against Applicant in tax year 2010 (1.k). a $26,676 federal tax lien entered against Applicant in tax year 2013 (1.l).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(b), AG ¶ 19(c), AG ¶ 19(f). The judge applied mitigating conditions AG ¶ 20(b), AG ¶ 20(d), AG ¶ 20(g). The decision turned on the following: The applicant has a history of significant delinquent debts totaling over $74,000, including multiple charged-off accounts and federal tax liens; The applicant failed to demonstrate a good-faith effort to resolve her debts or to enter into repayment agreements; The applicant's financial issues were ongoing and not mitigated by circumstances beyond her control, as most debts were incurred while she was earning a high income.
Why the Applicant Was Denied
- The applicant has a history of significant delinquent debts totaling over $74,000, including multiple charged-off accounts and federal tax liens.
- The applicant failed to demonstrate a good-faith effort to resolve her debts or to enter into repayment agreements.
- The applicant's financial issues were ongoing and not mitigated by circumstances beyond her control, as most debts were incurred while she was earning a high income.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(b)raisedUnwillingness to Satisfy Debts Regardless of the Ability to Do So
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 19(f)raisedFailure to File or Fraudulently Filing Annual Federal, State, or Local Income Tax Returns or Failure to Pay Annual Federal, State, or Local Income Tax as Required
- AG ¶ 20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlThe applicant's financial situation was adversely affected by her divorces and unemployment.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant did not demonstrate a good-faith effort to resolve her delinquent debts.
- AG ¶ 20(g)rejectedArrangements with the Appropriate Tax Authority to File or Pay the Amount OwedThe applicant's federal tax debts remain outstanding.
Key Rule Quoted
“An applicant is not required to be debt free, but is required to manage his finances in such a way as to meet his financial obligations.”
Procedural Posture
- SOR issuedMay 4, 2017
- Answer filedMay 24, 2017
- Hearing heldJun 13, 2018
- Decision dateJul 31, 2018
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations Under Guideline F
- Importance of Demonstrating Proactive Debt Management in Security Clearance Cases
- Impact of Financial Irresponsibility on Trustworthiness and Reliability for Security Clearance Eligibility