Summary
A 33-year-old defense contractor employee was denied a security clearance under Guideline F (Financial Considerations) due to approximately $42,000 in delinquent debts. These debts included judgments and a vehicle repossession, which were explicitly cited in the Statement of Reasons.
The applicant acknowledged his financial difficulties and stated an intention to file for Chapter 7 bankruptcy. However, he failed to provide evidence of financial counseling or any concrete efforts to address or resolve his outstanding debts since retaining counsel for bankruptcy proceedings.
Ultimately, the denial was based on the applicant's admitted and unaddressed delinquent debts, his failure to demonstrate financial counseling or resolution efforts, and the lack of evidence that his financial problems were under control. Disqualifying conditions were raised, and while mitigating conditions were considered, they were not sufficient to overcome the security concerns.
Why the Applicant Was Denied
- Applicant admitted to approximately $42,000 in delinquent debts, which remain unaddressed.
- He failed to provide evidence of financial counseling or efforts to resolve his debts since the retainer agreement for bankruptcy.
- The applicant did not demonstrate that his financial problems are resolved or under control.
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's debts are significant and multiple, with no evidence of resolution.
- AG ¶ 20(b)rejectedThe Conditions That Resulted in the Behavior Were Largely Beyond the Person’s ControlApplicant did not provide information on efforts to meet obligations during temporary employment.
- AG ¶ 20(c)rejectedThe Person Has Received or Is Receiving Counseling for the ProblemApplicant failed to disclose whether he received financial counseling.
- AG ¶ 20(d)rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsNo evidence of good-faith efforts to address debts was presented.
Key Rule Quoted
“Failure or an 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 issuedDec 4, 2009
- Answer filedDec 29, 2009Applicant admitted all allegations.
- Hearing heldApr 20, 2010Case assigned to administrative judge.
- Decision dateApr 27, 2010
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Failure to Demonstrate Good-faith Efforts to Address Debts
- Impact of Financial Considerations on Security Clearance Eligibility