Summary
The applicant, a 56-year-old Early Child Care Service manager pursuing a Master's Degree, faced security clearance denial under Guideline F due to significant financial difficulties, including overdue debts exceeding $38,000. The judge found that the applicant's financial issues were longstanding and unresolved, leading to concerns about her reliability and trustworthiness.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: This overdue debt is cited in the SOR in the amount of $2,569. Applicant admitted this SOR allegation in her RSOR, and she wrote she is paying $25 a month toward this debt. Item C confirms that she is to begin being billed in monthly payments of $25. The evidence does not establish that this debt has been resolved or reduced in any manner (1.a). This overdue debt is cited in the SOR in the amount of $1,608. Applicant admitted this SOR allegation in her RSOR, and she wrote she has made a payment plan for this debt. Item D confirms that she is to begin being billed in monthly payments of $50.25 beginning on March 4, 2016, to July 21, 2017. Item E establishes that one payment of $50.25 was made on March 7, 2016. The evidence does not establish that this debt has been resolved or reduced beyond that one payment (1.b). This overdue debt is cited in the SOR in the amount of $530. Applicant admitted this SOR allegation in her RSOR, and she wrote she this debt is for cell service for her daughter’s phone, and she is currently in negotiations with the creditor to settle this debt. The evidence does not establish that this debt has been resolved or reduced (1.c). This overdue debt is cited in the SOR in the amount of $382. Applicant denied this SOR allegation in her RSOR, and she wrote she is disputing this debt. Item J establishes that Applicant has disputed this debt. However, there is no evidence of the outcome of the dispute. The evidence does not establish that this debt has been resolved or reduced (1.d). This overdue debt is cited in the SOR in the amount of $262. Applicant denied this SOR allegation in her RSOR, and she wrote she is disputing this debt. Item J establishes that Applicant has disputed this debt. However, there is no evidence of the outcome of the dispute. The evidence does not establish that this debt has been resolved or reduced (1.e). This overdue debt for Federal taxes for tax years 2007 and 2008 are cited in the SOR in the amounts of $10,000. Applicant admitted this SOR allegation in her RSOR, and she wrote that she has made a payment plan for this debt. Item K confirms that she is to begin being billed in monthly payments of $50 toward this debt, and that she has made at least six payments of $50 toward this debt. The evidence establishes that this debt is being reduced, but there is still more than $9,000 owed toward this debt (1.f).
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(d). The decision turned on the following: The applicant accumulated significant delinquent debt, most of which has been overdue for several years; The applicant has not significantly reduced or resolved her overdue debts; The applicant did not demonstrate a good-faith effort to repay the majority of overdue creditors.
Why the Applicant Was Denied
- The applicant accumulated significant delinquent debt, most of which has been overdue for several years.
- The applicant has not significantly reduced or resolved her overdue debts.
- The applicant did not demonstrate a good-faith effort to repay the majority of overdue creditors.
Conditions Referenced
- AG ¶ 19(a)appliedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)appliedHistory of Not Meeting Financial Obligations
- AG ¶ 20(b)rejectedConditions Beyond the Person's ControlThe judge found that the applicant did not act responsibly under the circumstances.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay DebtsThe applicant has not initiated a good-faith effort to repay the majority of overdue creditors.
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 issuedOct 28, 2015
- Answer filedNov 24, 2015Applicant requested decision on written record.
- Hearing held—Decision made based on written record.
- Decision dateDec 7, 2016
Cite For
- Financial Considerations Under Guideline F
- Impact of Unresolved Debts on Security Clearance Eligibility
- Whole-person Concept in Security Clearance Decisions