Summary
A 53-year-old defense contractor and military retiree was denied a security clearance under Guideline F (Financial Considerations) due to significant financial delinquencies. The Statement of Reasons detailed several outstanding debts, including a mortgage loan that was $3,696 past due with a balance of $202,543, and three delinquent consumer credit card accounts with balances of $12,875, $9,673, and $18,427, respectively. Additionally, the applicant filed for Chapter 13 bankruptcy in February 2014, which was dismissed in April 2014.
Disqualifying conditions under Adjudicative Guidelines Paragraphs 19(a) and 19(c) were raised. While mitigating conditions under Paragraphs 20(b), 20(c), 20(d), and 20(e) were applied, they were insufficient to overcome the security concerns.
The denial was based on the applicant's approximately $43,608 in total credit card debt, with $25,319 past due as of September 2015. The applicant failed to demonstrate a consistent track record of payments toward these delinquent debts, and his financial issues were exacerbated by alimony obligations and a lack of proactive debt management. Consequently, it was concluded that he posed a risk to national security.
Why the Applicant Was Denied
- The applicant has approximately $43,608 in credit card debt, with $25,319 past due as of September 2015.
- He has not demonstrated a track record of payments toward his delinquent debts.
- The applicant's financial issues were exacerbated by his alimony obligations and lack of proactive debt management.
Conditions Referenced
- AG ¶ 19(a)appliedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)appliedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlWhile the applicant's financial struggles began due to his divorce, he did not act fully responsibly toward his creditors after his bankruptcy was dismissed.
- AG ¶ 20(c)rejectedReceived or Is Receiving Counseling for the ProblemThe applicant did not provide evidence of counseling or that his financial issues were under control.
- AG ¶ 20(d)rejectedInitiated a Good-faith Effort to Repay Overdue CreditorsThe applicant's application for a 401(k) loan was not sufficient to demonstrate a good-faith effort without evidence of payments.
- AG ¶ 20(e)appliedReasonable Basis to Dispute the Legitimacy of the Past-due DebtThe applicant was only an authorized user on one account, which he disputed.
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedMay 20, 2015
- Answer filedJun 4, 2015
- Hearing heldDec 1, 2015
- Decision dateJun 14, 2016
Cite For
- Financial Irresponsibility Under Guideline F
- Impact of Divorce on Financial Obligations
- Lack of Demonstrated Debt Repayment History