Summary
A 28-year-old defense contractor employee was denied a security clearance under Guideline F, Financial Considerations, due to approximately $18,570 in delinquent debt. This total included a $6,000 tax obligation to the IRS for the 2003 tax year.
The Statement of Reasons detailed several specific outstanding debts. These included a $2,730 delinquent account referred for collection by Cross Country in July 2004, owed to Appl CD Bk/Pinnacle Financial Group, which remained unpaid as of April 27, 2007. Additionally, the applicant owed $3,000, $2,000, $1,500, and $5,000 to various collection agencies for delinquent accounts, all unpaid as of April 27, 2007. The $6,000 IRS debt for tax year 2003 was also unpaid as of October 20, 2006.
The denial was based on the applicant's accumulation of approximately $18,570 in delinquent and charged-off debt, including the IRS obligation. A key factor in the denial was the applicant's failure to provide a structured plan to address her creditors, leading to the conclusion that her financial issues posed a security concern.
Why the Applicant Was Denied
- Applicant incurred approximately $18,570 in delinquent debt, including charged off accounts.
- Applicant owes approximately $6,000 to the IRS for tax year 2003.
- Applicant did not provide a structured plan to pay her creditors.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to RecurApplicant still carries a significant amount of delinquent debt.
- AG ¶ 20(b)rejectedThe Conditions That Resulted in the Behavior Were Largely Beyond the Person's ControlApplicant did not provide sufficient evidence of special circumstances.
- AG ¶ 20(c)rejectedThe Person Has Received or Is Receiving Counseling for the ProblemApplicant has not received financial counseling.
- AG ¶ 20(d)rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue CreditorsApplicant has not shown a documented track record of remedial actions.
- AG ¶ 20(e)rejectedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due DebtApplicant did not provide evidence of actions to resolve the issue.
Key Rule Quoted
“The issue is not whether Applicant is still legally liable for any or all of her outstanding debts, but whether she has presented sufficient evidence of extenuation, mitigation or changed circumstances to warrant a favorable security determination.”
Procedural Posture
- SOR issuedDec 14, 2006
- Answer filedJan 11, 2007Applicant elected to have her case decided on the record.
- Hearing held—No hearing; case decided on the record.
- Decision dateOct 18, 2007
Cite For
- Denial of Security Clearance Due to Significant Delinquent Debt Under Guideline F
- Failure to Provide a Structured Plan for Debt Repayment
- Insufficient Evidence of Financial Rehabilitation Efforts