Summary
A 40-year-old defense contractor employee was denied a security clearance due to financial considerations under Guideline F. The applicant had numerous delinquent debts, totaling approximately $41,700, which raised concerns under Disqualifying Conditions AG ¶ 19(a), AG ¶ 19(b), and AG ¶ 19(c).
While the applicant attempted to manage her debts through a law firm, and one debt alleged in the Statement of Reasons (SOR ¶ 1.b) was paid in full, other issues remained. The applicant denied responsibility for a debt alleged in SOR ¶ 1.c, stating it was in her husband's name, and denied a medical debt (SOR ¶ 1.i), claiming unawareness. However, a debt alleged in SOR ¶ 1.e remained open and unresolved.
Ultimately, the judge found that the applicant had not effectively resolved or managed most of her delinquent debts. There was insufficient evidence of financial counseling or a comprehensive plan to address all outstanding obligations, and the legitimacy of a medical debt was not disputed. Despite the application of Mitigating Conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d), and AG ¶ 20(e), the security clearance was denied.
Why the Applicant Was Denied
- The applicant has numerous delinquent debts that were not resolved or managed effectively.
- The applicant failed to provide evidence of financial counseling or a comprehensive plan to address all debts.
- The applicant did not dispute the legitimacy of a medical debt, which contributed to the financial concerns.
Conditions Referenced
- AG ¶ 19(a)appliedInability to Satisfy Debts
- AG ¶ 19(b)appliedUnwillingness to Satisfy Debts Regardless of the Ability to Do So
- AG ¶ 19(c)appliedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was Infrequent, or Unlikely to Recur
- AG ¶ 20(b)appliedConditions That Resulted in Financial Problems Were Largely Beyond the Person's Control
- AG ¶ 20(c)rejectedReceived Financial Counseling From a Legitimate Source
- AG ¶ 20(d)appliedInitiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors
- AG ¶ 20(e)rejectedReasonable Basis to Dispute the Legitimacy of the Past-due Debt
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the adjudicative guidelines.”
Procedural Posture
- SOR issuedJun 27, 2016
- Answer filedAug 10, 2016
- Hearing held—Decision made on the record without a hearing.
- Decision dateJul 18, 2017
Cite For
- Evaluation of Financial Considerations Under Guideline F
- Requirements for Demonstrating Financial Responsibility
- Impact of Unresolved Debts on Security Clearance Eligibility