Summary
A DOD contractor employee was denied a security clearance under Guideline F, Financial Considerations, due to significant and unresolved financial issues. The applicant faced 14 delinquent debts totaling approximately $49,764. These included a $42,776 home mortgage foreclosure charged off in 2011, a $3,678 state tax lien from 2002, and two judgments from 2008 for $320 and $191. Other debts included various charged-off accounts and collection accounts, ranging from $43 to $1,075, dating from 2010 to 2014.
The Statement of Reasons cited these numerous financial obligations, raising concerns about the applicant's reliability and trustworthiness. While the applicant acknowledged the financial difficulties and claimed to have made some payment arrangements, insufficient documentation was provided to demonstrate responsible financial management or the resolution of these debts.
Ultimately, the applicant's security clearance was denied because the financial problems remained unresolved, and there was a lack of evidence regarding efforts to address the delinquent accounts or improve the current financial situation. This history of financial irresponsibility led to the denial.
Why the Applicant Was Denied
- The applicant has 14 delinquent debts totaling approximately $49,764, indicating a history of financial irresponsibility.
- The applicant did not provide documentation of efforts to resolve his delinquent accounts or his current financial situation.
- The applicant's financial problems remain unresolved, raising questions about his reliability and judgment.
Conditions Referenced
- AG ¶ 19(a)appliedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)appliedHistory of Not Meeting Financial Obligations
- AG ¶ 20(b)raisedConditions Largely Beyond the Person's ControlThe applicant experienced a period of unemployment from June 2007 to April 2008.
- AG ¶ 20(d)raisedGood-faith Effort to Repay Overdue CreditorsThe applicant resolved some debts but did not demonstrate a good-faith effort for the remaining debts.
Key Rule Quoted
“An applicant is not required to be debt free, but is required to manage his finances in such a way as to meet his financial obligations.”
Procedural Posture
- SOR issuedAug 25, 2015
- Answer filedNov 6, 2015Requested decision on the record.
- Hearing heldN/ANo hearing; decision made on the record.
- Decision dateMay 19, 2017
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Importance of Providing Documentation to Support Claims of Financial Responsibility
- Impact of Financial Irresponsibility on Security Clearance Eligibility