Summary
A 32-year-old defense contractor and former Air National Guard member was denied a security clearance due to financial considerations under Guideline F. The applicant faced concerns stemming from multiple unresolved delinquent debts totaling approximately $75,000.
The Statement of Reasons detailed several specific allegations, including two private student loans totaling about $30,000, a charged-off auto loan of about $14,000, and four credit card debts totaling about $27,000. Additionally, six miscellaneous and medical debts totaling about $2,300 were cited. Disqualifying conditions under Adjudicative Guidelines (AG) ¶ 19(a) and AG ¶ 19(c) were raised.
While mitigating conditions under AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), and AG ¶ 20(d) were applied, the applicant's security clearance was ultimately denied. This decision was based on his failure to provide documentation of a plan to pay his debts and his inability to demonstrate good-faith efforts to resolve his financial obligations. His financial problems were deemed ongoing and unresolved, indicating a lack of responsible financial management.
Why the Applicant Was Denied
- The applicant failed to provide documentation showing a plan to pay his debts and did not demonstrate good-faith efforts to resolve his financial obligations.
- The applicant's financial problems were ongoing and unresolved, indicating a lack of responsible handling of his financial affairs.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was Infrequent, or Occurred Under Circumstances Unlikely to RecurThe applicant's debts are ongoing and unresolved.
- AG ¶ 20(b)appliedConditions That Resulted in Financial Problems Were Largely Beyond the Person's ControlThe applicant's unemployment contributed to his financial problems.
- AG ¶ 20(c)rejectedReceived Financial Counseling From a Legitimate SourceThe applicant did not provide supporting documentation for his claims of consulting a bankruptcy attorney.
- AG ¶ 20(d)rejectedInitiated and Is Adhering to a Good-faith Effort to Repay CreditorsThe applicant made no efforts to repay his creditors.
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the adjudicative guidelines.”
Procedural Posture
- SOR issuedNov 8, 2017
- Answer filedJan 16, 2018
- Hearing heldAug 9, 2018
- Decision dateOct 23, 2018
Cite For
- Failure to Provide Evidence of Financial Responsibility Under Guideline F
- Impact of Unresolved Debts on Security Clearance Eligibility
- Consideration of Personal Circumstances in Financial Evaluations for Security Clearances