Summary
The applicant, a 64-year-old widow employed by a defense contractor, faced security concerns under Guideline F due to delinquency on 12 debts totaling over $56,000. Despite resolving six debts, the applicant failed to provide documentation for the remaining unresolved debts, leading to the denial of her security clearance application.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant was alleged to be indebted on a mortgage that was in foreclosure for a past due amount of approximately $36,750 on a total loan of $220,892 (1.a). Applicant was alleged to be indebted on a delinquent auto loan that was charged off in the amount of $13,418 (1.b). Applicant was alleged to be indebted on a collection account in the amount of $1,193 (1.c). Applicant was alleged to be indebted on a delinquent medical account in the amount of $1,037 (1.d). Applicant was alleged to be indebted on a collection account in the amount of $1,008 (1.e). Applicant was alleged to be indebted on a collection account in the amount of $157 (1.f). Applicant was alleged to be indebted on a delinquent medical account in the amount of $58 (1.g). Applicant was alleged to be indebted on a judgment against her in the amount of $1,049 (1.h). Applicant was alleged to be indebted on a collection account in the amount of $1,018 (1.i). Applicant was alleged to be indebted on a collection account in the amount of $326 (1.j). Applicant was alleged to be indebted on a collection account in the amount of $438 (1.k). Applicant was alleged to be indebted on a collection account in the amount of $274 (1.l).
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(c), AG ¶ 20(e). The decision turned on the following: The applicant has unresolved debts totaling over $56,000, indicating an inability to meet financial obligations; The applicant did not provide evidence of financial counseling or a plan to address her debts; The applicant failed to demonstrate responsible financial behavior or timely resolution of her debts.
Why the Applicant Was Denied
- The applicant has unresolved debts totaling over $56,000, indicating an inability to meet financial obligations.
- The applicant did not provide evidence of financial counseling or a plan to address her debts.
- The applicant failed to demonstrate responsible financial behavior or timely resolution of 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)rejectedConditions Largely Beyond the Person's ControlWhile the applicant's financial issues were attributed to her husband's illness and death, she did not act responsibly in addressing her debts.
- AG ¶ 20(c)rejectedReceived or Receiving Financial CounselingThe applicant provided no evidence of financial counseling or that her financial problems are being resolved.
- AG ¶ 20(e)rejectedReasonable Basis to Dispute Legitimacy of DebtsThe applicant did not provide documented proof to substantiate any disputes regarding her debts.
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedDec 8, 2015
- Answer filedDec 30, 2015Applicant elected to have the case decided on the written record.
- Hearing held—No hearing; case decided on written record.
- Decision dateNov 29, 2016
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Failure to Demonstrate Responsible Financial Behavior
- Impact of Financial Delinquencies on Security Clearance Eligibility