Summary
A 41-year-old applicant was denied a security clearance under Guideline F (Financial Considerations) due to approximately $23,000 in significant unpaid debts. The Statement of Reasons detailed multiple financial obligations, including an electric bill from 2002, a 2009 medical debt, and two student loans from 2003 that ceased payment after a layoff. Other debts included a car repossession from 2006, a closed bank account with outstanding checks, and unpaid rent from 2002 after breaking a lease.
Further financial issues included child support arrearages since 2001, a judgment for a 2004 car accident where the applicant lacked insurance, and a 2007 closed bank account with an outstanding balance. A 2008 hospital bill was also unpaid due to a lack of health insurance. One judgment was denied by the applicant, who stated she did not recognize the account.
Despite acknowledging her debts and promising future payments, the applicant failed to demonstrate a consistent repayment record or a realistic financial plan for resolving her outstanding obligations. This led to the denial of her security clearance.
Why the Applicant Was Denied
- The applicant has approximately $23,000 in delinquent debts that remain unpaid.
- She has not established a consistent record of making promised payments to creditors.
- The applicant lacks a realistic formulated financial plan for resolving her debts.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlThe applicant experienced extended periods of unemployment that affected her ability to pay debts.
- AG ¶ 20(d)rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant has only promised to make payments in the future without a consistent record.
- AG ¶ 20(e)rejectedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due DebtThe applicant did not provide documented proof for the basis of her disputes.
Key Rule Quoted
“Failure or inability 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 information.”
Procedural Posture
- SOR issuedJan 7, 2010
- Answer filedJan 22, 2010
- Hearing heldApr 15, 2010
- Decision dateMay 12, 2010
Cite For
- Failure to Mitigate Financial Considerations Under Guideline F
- Inability to Demonstrate a Consistent Record of Debt Repayment
- Lack of a Realistic Financial Plan for Resolving Debts