Summary
A 49-year-old telecommunications specialist was denied a security clearance under Guideline F (Financial Considerations) due to unresolved financial issues. The applicant faced allegations of numerous delinquent debts totaling $78,000, including two student loans amounting to $36,679 and $29,510, respectively. Other debts included an automobile loan, a charged-off $1,000 debt, an amount owed to a telecommunications provider, a past-due $1,132 to a finance company, a credit card debt of $802, and various delinquent medical debts. One debt of $1,760 was paid from her savings.
The applicant admitted to 17 of the 25 alleged delinquent debts and had a history of two bankruptcies, with the most recent discharging $61,515 in unsecured debts. Disqualifying conditions under Adjudicative Guidelines (AG) ¶ 19(a) and AG ¶ 19(c) were raised. While mitigating conditions AG ¶ 20(b), AG ¶ 20(c), and AG ¶ 20(d) were applied, they were insufficient to overcome the concerns.
Ultimately, the clearance was denied because the applicant failed to provide sufficient evidence of a consistent repayment plan or progress in addressing her debts, despite acknowledging her financial difficulties and expressing intent to resolve them. Her financial problems were deemed unmitigated.
Why the Applicant Was Denied
- Applicant admitted to 17 of the 25 delinquent debts alleged in the SOR.
- Applicant has a history of two bankruptcies, with the most recent resulting in the discharge of $61,515 in unsecured debts.
- Applicant failed to provide evidence of a consistent repayment plan or progress on her debts, despite having the opportunity to do so.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlWhile applicant faced overwhelming circumstances, she did not demonstrate responsible actions to address her debts.
- AG ¶ 20(c)rejectedReceiving Financial CounselingApplicant's financial counseling was too recent and lacked evidence of effective progress.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay DebtsApplicant expressed intent to pay but did not provide evidence of actual payments or a structured plan.
Key Rule Quoted
“Failure to live within one’s means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual’s reliability, trustworthiness and ability to protect classified or sensitive information.”
Procedural Posture
- SOR issuedOct 20, 2017
- Answer filedNov 30, 2017
- Hearing heldApr 10, 2018Record left open until April 24, 2018 for Government's exhibits.
- Decision dateMay 22, 2018
Cite For
- Denial of Security Clearance Due to Unresolved Financial Issues Under Guideline F
- Impact of Multiple Bankruptcies on Security Clearance Eligibility
- Insufficient Evidence of Financial Responsibility and Repayment Plans in Security Clearance Cases