Summary
The applicant, a 59-year-old defense contractor and Navy veteran, faced security clearance denial under Guideline F due to unresolved debts exceeding $137,000, despite filing for Chapter 13 bankruptcy. The judge found that the applicant failed to mitigate the financial concerns, as he did not demonstrate responsible actions regarding his debts after becoming fully employed.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: a second mortgage in the amount of $61,105 (1.a). a delinquent vehicle loan in the amount of $13,319 (1.b). a charged off account in the amount of $3,426 (1.c). a delinquent credit card account in the amount of $3,117 (1.d). a delinquent student loan in the amount of $1,964 (1.e). a delinquent credit card account in the amount of $980 (1.f). a delinquent student loan in the amount of $50 (1.g). a delinquent credit card account in the amount of $834 (1.h). a delinquent vehicle loan in the amount of $11,999 (1.i). a delinquent vehicle loan in the amount of $24,272 (1.j). a delinquent loan in the amount of $15,000 (1.k). a delinquent account in the amount of $1,161 (1.l).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d), AG ¶ 20(e). The decision turned on the following: The applicant has a lengthy history of financial indebtedness, documented by credit reports; All of the applicant's 12 delinquent accounts remain unresolved; The applicant failed to demonstrate that he acted responsibly in addressing his debts since becoming fully employed.
Why the Applicant Was Denied
- The applicant has a lengthy history of financial indebtedness, documented by credit reports.
- All of the applicant's 12 delinquent accounts remain unresolved.
- The applicant failed to demonstrate that he acted responsibly in addressing his debts since becoming fully employed.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlThe applicant failed to establish that he acted responsibly by addressing even the smallest of his debts.
- AG ¶ 20(c)rejectedThe Person Has Received or Is Receiving Counseling for the ProblemThere are no clear indications that his financial problems are being resolved or are under control.
- AG ¶ 20(d)rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue CreditorsThe applicant has not provided evidence of any formal dispute concerning any SOR-listed debt.
- AG ¶ 20(e)rejectedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due DebtThe applicant admitted all of the underlying debts.
Key Rule Quoted
“Any doubt concerning personnel being considered for access to classified information will be resolved in favor of national security.”
Procedural Posture
- SOR issuedSep 15, 2015
- Answer filedOct 5, 2015Applicant initially elected to have the case decided on the written record.
- Hearing heldMay 9, 2016
- Decision dateAug 26, 2016
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Failure to Demonstrate Responsible Financial Management Post-employment
- Impact of Bankruptcy Filing on Security Clearance Eligibility