Summary
A 58-year-old married male with military service was denied a security clearance under Guideline F (Financial Considerations) due to significant unresolved financial issues. The applicant was indebted to 15 creditors for approximately $27,443, with financial problems ongoing since at least 2012. Although he had a Chapter 7 bankruptcy discharged in 1995, he failed to provide evidence of resolving his current delinquencies.
The applicant attributed his financial difficulties to providing support for his mother and spouse. Credit reports from 2015 and 2016 identified numerous unresolved debts, including an $11,587 factoring debt. While the applicant disclosed two delinquent debts and stated he was waiting to secure a new 401K loan to pay off debts, he did not document any steps taken to resolve his delinquencies.
Despite promises to address his debts, the applicant failed to establish a history of responsible action or demonstrate a good-faith effort to repay them. The decision concluded that the applicant did not meet the burden of proof for mitigation, leading to the denial of his security clearance.
Why the Applicant Was Denied
- Applicant is indebted to 15 creditors totaling approximately $27,443.
- Applicant failed to produce documentation showing resolution of any delinquencies.
- Applicant's financial problems have been ongoing since at least 2012.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
- AG ¶ 20(b)appliedConditions Largely Beyond the Person's ControlApplicant's need to provide financial assistance to his wife and mother may be factors beyond his control.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay DebtsApplicant has not established a history of responsible action with respect to his delinquent debts.
Key Rule Quoted
“Failure 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 or sensitive information.”
Procedural Posture
- SOR issuedJun 6, 2016
- Answer filedJun 29, 2016Applicant requested a decision on the written record.
- Hearing held—No hearing; case decided on the written record.
- Decision dateOct 12, 2017
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Importance of Demonstrating Financial Responsibility for Security Clearance Eligibility
- Impact of Ongoing Financial Issues on Trustworthiness and Reliability Assessments