Summary
A 36-year-old single father was denied a security clearance under Guideline F (Financial Considerations) due to significant unpaid debts totaling approximately $118,000. The Statement of Reasons detailed several specific financial issues, including approximately $50,000 in unpaid student loans, $20,000 in child support arrears, a $15,000 charged-off auto loan, $30,000 in collection accounts, and a $3,000 judgment against him.
The applicant acknowledged these financial problems and stated an intention to file for Chapter 13 bankruptcy. Disqualifying conditions AG ¶ 19(a) and AG ¶ 19(c) were raised, while mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), and AG ¶ 20(d) were applied.
Ultimately, the clearance was denied because the applicant admitted to the substantial debt but failed to provide evidence of a good-faith effort to resolve his financial issues or demonstrate progress toward filing for bankruptcy. His financial problems were not deemed under control, and he had not established the mitigating conditions sufficiently.
Why the Applicant Was Denied
- The applicant admitted to having significant unpaid debts totaling approximately $118,000.
- He failed to provide evidence of a good-faith effort to resolve his financial issues or progress towards filing for bankruptcy.
- The applicant's financial problems were not under control, and he had not established mitigating conditions.
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 Unlikely to RecurThe applicant's delinquent debts remain unresolved.
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlThe applicant did not act responsibly by borrowing money to lend to a friend.
- AG ¶ 20(c)rejectedReceiving Financial CounselingThe applicant did not provide evidence of progress in resolving debts or documentation of bankruptcy filing.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay DebtsThe applicant's intention to file for bankruptcy since 2016 had not materialized.
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 issuedJan 4, 2018
- Answer filedApr 26, 2018
- Hearing held—Decision made on the record without a hearing.
- Decision dateAug 29, 2018
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations Under Guideline F
- Insufficient Evidence of Good-faith Efforts to Mitigate Financial Issues
- Importance of Demonstrating Progress in Resolving Debts for Security Clearance Eligibility