Summary
A 31-year-old defense contractor and military veteran was denied a security clearance under Guideline F (Financial Considerations) due to unresolved delinquent debts exceeding $72,000. The applicant attributed these financial difficulties to a divorce and a change in duty station.
Specific allegations included an unresolved $1,993 charged-off personal loan from August 2016, for which the dispute outcome was unknown. While a $3,474 credit card debt and a $1,963 credit card debt were paid, a $50,720 balance on a jointly held mortgage, resolved through foreclosure and sale in February 2016, lacked documentation to support the applicant's claim that any deficiency was his ex-wife's responsibility.
The denial was based on the applicant's ongoing unresolved debts, his failure to provide evidence of financial counseling or a concrete plan to address his obligations, and an insufficient demonstration of good-faith efforts to resolve his financial issues.
Why the Applicant Was Denied
- The applicant has unresolved delinquent debts totaling over $72,000.
- He failed to provide evidence of financial counseling or a plan to address his debts.
- The applicant did not demonstrate a good-faith effort to resolve his financial obligations.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(b)raisedUnwillingness to Satisfy Debts Regardless of the Ability to Do So
- AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
- AG ¶ 20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlThe applicant attributed his financial issues to a divorce and a change in duty station.
- AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsTwo debts were resolved in good faith.
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to RecurThe applicant has ongoing unresolved debts.
- AG ¶ 20(c)rejectedReceived Financial CounselingThe applicant did not provide evidence of financial counseling.
- AG ¶ 20(e)rejectedReasonable Basis to Dispute the Legitimacy of the Past-due DebtThe applicant did not provide a legitimate basis for disputing one debt.
Key Rule Quoted
“Any doubt concerning personnel being considered for national security eligibility will be resolved in favor of the national security.”
Procedural Posture
- SOR issuedJul 31, 2014
- Answer filedAug 12, 2014
- Hearing held—Decided on the written record without a hearing.
- Decision dateJan 4, 2018
Cite For
- Unresolved Delinquent Debts Under Guideline F
- Insufficient Evidence of Financial Responsibility
- Impact of Personal Circumstances on Financial Obligations