Summary
A 43-year-old married man with three children was denied a security clearance under Guideline F (Financial Considerations) due to approximately $88,000 in unresolved financial issues. The applicant attributed these debts to the failure of his remodeling business during the 2007-2008 financial crisis. However, he did not provide documentation of any efforts to resolve these debts, leading to a conclusion that he failed to demonstrate good judgment or reliability.
The Statement of Reasons detailed seven specific debts. These included a $3,029 judgment from August 2009, a $3,461 charged-off automobile loan for a repossessed business vehicle, and a $38,712 charged-off account for leased business equipment, delinquent since 2010. Other debts included a $3,164 charged-off credit card account, on which the applicant claimed to be making court-ordered payments but provided no proof, and a $31,536 collection account for a business line of credit. Additionally, there were two other collection accounts totaling $8,013 and $179, respectively.
Despite the applicant's explanations, he failed to produce documentation showing resolution for any of the delinquencies or a good-faith effort to repay overdue creditors. Consequently, the security clearance was denied.
Why the applicant was denied
- Applicant is indebted to seven creditors totaling approximately $88,000.
- Applicant failed to produce documentation showing resolution of any delinquencies.
- Applicant did not demonstrate a good-faith effort to repay overdue creditors.
Conditions referenced
- F.1.araisedInability to Satisfy Debts
- F.1.craisedA History of Not Meeting Financial Obligations
- F.2.bappliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlApplicant's business failure was due to economic factors beyond his control, but he did not act responsibly regarding his debts.
- F.2.drejectedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsApplicant did not provide evidence of a good-faith effort to resolve his 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 issuedJul 27, 2016
- Answer filedAug 26, 2016Applicant requested a decision on the written record.
- Hearing held—No hearing; case decided on the written record.
- Decision dateSep 1, 2017
Cite for
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Failure to Demonstrate Good-faith Efforts to Resolve Debts
- Impact of Financial Irresponsibility on Security Clearance Eligibility