Summary
A 28-year-old mechanical engineer was denied a security clearance under Guideline F, Financial Considerations, due to significant unresolved financial issues. The applicant faced allegations of multiple delinquent debts totaling approximately $17,000.
While the applicant provided evidence of settling a $5,194 debt with one debtor for $3,700 in October 2007, and another $1,027 debt for $531.07 after it was sold to a collection company, five other delinquent debts remained unresolved. These included almost $2,000 to Creditor #1, $4,548 to Creditor #4 (though the applicant contended the amount was $1,778), $2,600 to Creditor #5, $1,618 to Creditor #6, and $3,945 to Creditor #7.
Despite a monthly discretionary income exceeding $1,500, the applicant made little progress in resolving these ongoing debts. The denial was based on the applicant's failure to document significant efforts to resolve the five delinquent debts and not establishing a good-faith effort to repay overdue creditors or seek credit counseling.
Why the Applicant Was Denied
- The applicant has unresolved delinquent debts totaling approximately $17,000.
- The applicant failed to document any significant efforts to resolve five delinquent debts despite having a stable income.
- The applicant did not establish a good-faith effort to repay overdue creditors or receive credit counseling.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)rejectedConditions That Resulted in the Behavior Were Largely Beyond the Person’s ControlThe applicant did not adequately explain how he acted responsibly under the circumstances of his unemployment.
- AG ¶ 20(d)rejectedInitiated a Good-faith Effort to Repay Overdue CreditorsThe applicant failed to demonstrate adequate contact with creditors or good faith payments.
Key Rule Quoted
“The responsibility for producing evidence initially falls on the Government to demonstrate that it is not clearly consistent with the national interest to grant or continue Applicant's access to classified information.”
Procedural Posture
- SOR issuedMay 2, 2007
- Answer filedJun 6, 2007Notarized Answer
- Hearing held—Applicant waived hearing and requested decision on written record.
- Decision dateJan 16, 2008
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations Under Guideline F
- Failure to Demonstrate Good-faith Efforts to Resolve Debts
- Insufficient Evidence of Financial Responsibility Despite Stable Employment