Summary
A 44-year-old senior engineering technician was denied a security clearance under Guideline F, Financial Considerations. The denial stemmed from approximately $22,000 in unpaid debts, primarily originating from a 2003 divorce. The Statement of Reasons detailed 13 specific unpaid accounts, including various credit card debts, collection accounts, utility bills, and a clinic bill, ranging from $22 to $8,083.
Disqualifying conditions related to financial irresponsibility were raised, and while several mitigating conditions were considered, they were ultimately not sufficient. The applicant also faced a contempt of court charge, resulting in 109 days of jail time for failing to follow a judge's orders.
The clearance was denied because the applicant's 13 past-due accounts, totaling around $22,000, had remained unpaid since 2003. The applicant did not provide evidence of a good-faith effort to repay these creditors or resolve the debts, and his financial problems were not deemed to be beyond his control. Despite a history of employment and positive character references, the applicant failed to demonstrate responsible financial management.
Why the Applicant Was Denied
- The applicant has 13 past due accounts totaling approximately $22,000, which have remained unpaid since 2003.
- The applicant failed to provide evidence of a good-faith effort to repay overdue creditors or resolve debts.
- The applicant's financial problems were not mitigated by circumstances beyond his control, as he has not acted responsibly regarding his debts.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur and Does Not Cast Doubt on the Individual’s Current Reliability, Trustworthiness, or Good Judgment.The debts were incurred long ago but remain unpaid, casting doubt on the applicant's good judgment.
- AG ¶ 20(b)rejectedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control and the Individual Acted Responsibly Under the Circumstances.The applicant's divorce occurred five years ago, and he has not acted responsibly regarding the debts.
- AG ¶ 20(c)rejectedThe Person Has Received or Is Receiving Counseling for the Problem And/or There Are Clear Indications That the Problem Is Being Resolved or Is Under Control.The applicant did not receive financial counseling despite seeking assistance.
- AG ¶ 20(d)rejectedThe Evidence Shows the Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts.Payments made were in response to garnishments, not a demonstration of good faith.
Key Rule Quoted
“An applicant is not required to be debt free, but is required to manage his finances so as to meet his financial obligations.”
Procedural Posture
- SOR issuedMar 5, 2008
- Answer filedMar 25, 2008
- Hearing heldMay 22, 2008
- Decision dateJul 16, 2008
Cite For
- Denial of Security Clearance Due to Significant Unpaid Debts Under Guideline F
- Failure to Demonstrate Responsible Financial Management
- Impact of Divorce on Financial Obligations and Security Clearance Eligibility