Summary
A 61-year-old defense contractor, employed as a facilities support lead, was denied a security clearance under Guideline F (Financial Considerations) due to significant and long-standing financial issues. The applicant admitted to 13 delinquent accounts totaling over $25,000, which included unpaid medical and credit card debts, a co-signed automobile loan, and two unpaid parking tickets. These financial problems dated back to at least 2009, with the largest debt stemming from a repossessed automobile for which she co-signed.
Despite acknowledging her debts and expressing an intent to file for bankruptcy, the applicant had not taken any concrete steps toward resolution. She had not documented any financial or credit counseling, nor had she accumulated the necessary funds for a bankruptcy petition by the hearing date. Her financial difficulties were considered recent and frequent, and she was deemed not to have acted responsibly in addressing them over many years.
The decision highlighted that the applicant appeared not to comprehend the seriousness of her financial situation or available assistance. Living with her son due to an inability to afford rent with her husband, whose income had declined, further underscored her financial strain. Ultimately, the clearance was denied because the applicant failed to demonstrate any reasonable prospect of resolving her debts, lacking documented counseling or a budget.
Why the Applicant Was Denied
- Applicant admitted to 13 delinquent accounts totaling over $25,000.
- Applicant failed to demonstrate any reasonable prospect of resolving her debts.
- Applicant did not document any financial or credit counseling or present a budget.
Conditions Referenced
- F.19(a)raisedInability or Unwillingness to Satisfy Debts
- F.19(c)raisedA History of Not Meeting Financial Obligations
- F.20(a)rejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to RecurApplicant's financial difficulties are recent and frequent.
- F.20(b)rejectedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlWhile circumstances were beyond her control, they are common and unlikely to recur.
- F.20(d)rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsApplicant failed to establish good faith efforts toward resolution.
- F.20(c)rejectedThe Person Has Received or Is Receiving Counseling for the Problem and There Are Clear Indications That the Problem Is Being Resolved or Is Under ControlApplicant has not undertaken any financial or credit counseling.
Key Rule Quoted
“The Government has a compelling interest in ensuring each applicant possesses the required judgement, reliability, and trustworthiness of those who must protect national interests as their own.”
Procedural Posture
- SOR issuedNov 12, 2014
- Answer filed—Applicant requested a hearing.
- Hearing heldApr 8, 2015
- Decision dateApr 30, 2015
Cite For
- Denial of Clearance Due to Significant Financial Issues Under Guideline F
- Lack of Good Faith Efforts to Resolve Debts as a Basis for Denial
- Importance of Demonstrating Financial Responsibility for Security Clearance Eligibility.