Summary
A 41-year-old marine designer was denied a security clearance under Guideline F (Financial Considerations) due to multiple unresolved debts and a history of bankruptcy. The applicant, steadily employed since 2013, faced allegations including a delinquent auto loan charged off in April 2013 for $7,886, and a delinquent rent bill referred for collection in September 2010 for $3,575. Other debts included a satellite television service bill for $262 and a medical debt for $110.
Additionally, the applicant had several judgments filed against him: one for $4,550 for past-due rent in August 2009, another for $656 in October 2010, a third for $1,255 for past-due rent in March 2012, and a fourth for $4,887 for a delinquent automobile loan in June 2011. The applicant also filed for bankruptcy in December 2000, receiving a discharge in March 2001.
Despite the application of mitigating conditions, the clearance was denied. The decision cited the applicant's numerous unresolved debts and a history of financial irresponsibility. The applicant failed to provide documentary evidence of debt resolution or payment agreements, leading to the conclusion that his financial situation was not under control and he had not demonstrated a good-faith effort to repay overdue creditors.
Why the Applicant Was Denied
- Applicant has numerous unresolved debts and a history of financial irresponsibility.
- Applicant failed to provide documentary evidence supporting claims of debt resolution or payment agreements.
- The applicant's financial situation is not under control, and he has not demonstrated a good-faith effort to repay overdue creditors.
Conditions Referenced
- AG ¶ 19(a)appliedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)appliedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedBehavior Happened Long Ago or InfrequentlyThe debts are numerous, recent, and not incurred under circumstances making them unlikely to recur.
- AG ¶ 20(b)notedConditions Largely Beyond the Person's Control
- AG ¶ 20(c)rejectedReceived or Receiving CounselingNo evidence of recent financial counseling was presented.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay CreditorsNo documentary evidence of payments or payment agreements was provided.
- AG ¶ 20(e)rejectedReasonable Basis to Dispute DebtNo documentation of disputes or evidence of actions to resolve issues was provided.
Key Rule Quoted
“An applicant has the ultimate burden of demonstrating that it is clearly consistent with the national interest to grant or continue his security clearance.”
Procedural Posture
- SOR issuedApr 1, 2016
- Answer filedJun 11, 2016
- Hearing heldSep 30, 2016
- Decision dateDec 6, 2016
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Insufficient Evidence of Financial Responsibility
- Impact of Financial History on Security Clearance Eligibility