Summary
A 35-year-old recently divorced applicant was denied a security clearance under Guideline F (Financial Considerations) due to significant delinquent debts. The applicant had accumulated over $19,000 in outstanding obligations, demonstrating a pattern of poor financial judgment.
The Statement of Reasons detailed that the applicant borrowed $14,000 from a relative to resolve some of his delinquent debts. However, he remained unable or unwilling to repay this loan, as well as five other specific delinquent debts totaling $5,002, toward which no repayments had been made.
The denial was based on the applicant's history of delinquent debts, his inability to repay the $14,000 loan from a relative, and a lack of sufficient evidence regarding financial counseling or a viable plan to manage his outstanding financial obligations. Disqualifying conditions under Adjudicative Guidelines Paragraphs 19(a) and 19(c) were raised, while mitigating conditions under Paragraphs 20(c), 20(d), and 20(e) were considered but ultimately did not overcome the security concerns.
Why the Applicant Was Denied
- The applicant has a history of delinquent debts totaling over $19,000, indicating poor financial judgment.
- He borrowed $14,000 from a relative to settle some debts but has no apparent means to repay that loan.
- The applicant provided insufficient evidence of financial counseling or a plan to manage his debts.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsWhile the applicant resolved some debts, he did so by incurring new debt without a means to repay.
- AG ¶ 20(c)rejectedReceived or Receiving Counseling for the ProblemThe applicant did not provide evidence of financial counseling.
- AG ¶ 20(e)rejectedReasonable Basis to Dispute Legitimacy of Past-due DebtThe applicant disputed a debt but provided no substantiating documentation.
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 issuedFeb 23, 2016
- Answer filedMar 9, 2016Applicant requested a decision on the written record.
- Hearing held—No hearing; decision made on the written record.
- Decision dateFeb 16, 2017
Cite For
- Denial Based on Financial Irresponsibility Under Guideline F
- Impact of Unresolved Debts on Security Clearance Eligibility
- Insufficient Evidence of Rehabilitation or Financial Management Efforts