Summary
A 45-year-old systems engineer was denied a security clearance under Guideline F, Financial Considerations, due to significant and unresolved financial issues. The applicant had previously received a Chapter 7 bankruptcy discharge and faced multiple delinquent debts totaling approximately $32,244. These debts included various unpaid medical bills, credit card balances, collection accounts, and an outstanding balance of $12,607 from a car repossession.
While some debts, such as several student loans, were current, the applicant had numerous unpaid obligations. Two specific items, a cable box charge of $262 and a cell phone bill of $138, were disputed by the applicant, but no proof was provided to substantiate these claims. Another collection account of $168 was also disputed without proof.
The denial was based on the applicant's history of financial difficulties and her failure to demonstrate a responsible approach to resolving her debts. She did not provide evidence of a realistic plan to address her financial obligations or to seek financial counseling. The applicant admitted to not making payments on most delinquent debts, living paycheck to paycheck, and not taking proactive steps to resolve her financial issues, leading to the conclusion that her financial situation posed a security risk.
Why the Applicant Was Denied
- The applicant has a history of financial difficulties, including a Chapter 7 bankruptcy discharge and numerous delinquent debts.
- She failed to provide evidence of a realistic plan to address her financial obligations or to seek financial counseling.
- The applicant admitted to not making payments on most of her delinquent debts, living paycheck to paycheck, and not taking proactive steps to resolve her financial issues.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
- AG ¶ 19(e)raisedConsistent Spending Beyond One's Means
- AG ¶ 20(a)rejectedBehavior Happened Long Ago or InfrequentlyThe applicant has numerous current delinquent debts.
- AG ¶ 20(b)rejectedConditions Beyond ControlWhile some circumstances were beyond her control, her decisions contributed to her financial issues.
- AG ¶ 20(c)rejectedReceived Counseling for the ProblemThe applicant did not seek financial counseling.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay DebtsThe applicant has not made efforts to resolve her debts, except for student loans.
- AG ¶ 20(e)rejectedDispute Legitimacy of DebtsThe applicant provided no documentation to support her disputes.
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the revised adjudicative guidelines (AG).”
Procedural Posture
- SOR issuedMar 16, 2008
- Answer filedApr 14, 2008
- Hearing heldMay 20, 2008
- Decision dateJun 23, 2008
Cite For
- Denial of Security Clearance Due to Financial Irresponsibility Under Guideline F
- Failure to Demonstrate Good-faith Efforts to Resolve Debts
- Impact of Financial Issues on Security Clearance Eligibility