Summary
The Applicant, a 36-year-old employed by a defense contractor, faced issues under Guideline F due to significant financial problems, including over $19,000 in past due debts following a bankruptcy in 2000. Despite intentions to address these debts with the help of his fiancée, the Applicant demonstrated insufficient progress, leading to the denial of his security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: In 2000, the Applicant had in excess of $40,000 of debts discharged by way of a Chapter 7 Bankruptcy (1.a). The Applicant owes a credit card company about $1,189 in past due indebtedness (1.b). The Applicant owes a finance company about $8,593 in past due indebtedness, for an automobile that was repossessed (1.c). The Applicant testified credibly that he has paid a $194 telephone bill (1.d). The Applicant has paid a $55 telephone bill to another phone provider (1.e). The Applicant owes another credit card company about $140 in past due indebtedness (1.f). The Applicant owes a sixth creditor about $262 in past due indebtedness (1.g). The Applicant owes a credit union about $1,001 in past due indebtedness (1.h). The Applicant owes a third credit card company about $3,539 in past due indebtedness (1.i). The Applicant owes a bank about $4,402 in past due indebtedness on two separate accounts (1.j).
The judge denied the clearance. The government raised disqualifying conditions F1, F3. The decision turned on the following: The Applicant has over $19,000 in past due debts, indicating a history of not meeting financial obligations; The Applicant has shown an inability or unwillingness to satisfy debts, with little progress made in addressing them.
Why the Applicant Was Denied
- The Applicant has over $19,000 in past due debts, indicating a history of not meeting financial obligations.
- The Applicant has shown an inability or unwillingness to satisfy debts, with little progress made in addressing them.
Conditions Referenced
- F1appliedHistory of Not Meeting Financial Obligations
- F3appliedInability or Unwillingness to Satisfy Debts
Key Rule Quoted
“An individual who is financially overextended is at risk of having to engage in illegal acts to generate funds.”
Procedural Posture
- SOR issuedDec 27, 2006
- Answer filedJan 22, 2007
- Hearing heldApr 16, 2007rescheduled from March 22, 2007
- Decision dateMay 3, 2007
Cite For
- Denial of Clearance Due to Significant Financial Issues Under Guideline F
- Insufficient Mitigation of Financial Obligations
- Impact of Financial Irresponsibility on Security Clearance Eligibility