Summary
A 51-year-old defense contractor was denied a security clearance under Guideline F (Financial Considerations) due to a history of significant financial issues. The Statement of Reasons detailed a bankruptcy filed in July 2002 and discharged in October 2002, along with a judgment for $12,039 and ten collection accounts. These collection accounts ranged from $44 to $2,016, including a medical debt and a utility account, totaling approximately $40,000 in delinquent debts.
Disqualifying conditions under Guideline F included a history of not meeting financial obligations and an inability or unwillingness to satisfy debts. While the applicant sought financial counseling and attempted to establish a budget, these efforts were not sufficient to mitigate the concerns.
The denial was based on the applicant's ongoing financial irresponsibility and failure to demonstrate sufficient evidence of resolving his financial issues or maintaining a viable debt management plan. His financial problems were considered ongoing and not adequately mitigated by recent counseling efforts, leading to the denial of his security clearance.
Why the Applicant Was Denied
- The applicant has a history of financial irresponsibility, including a bankruptcy and multiple delinquent debts.
- He did not demonstrate sufficient evidence of resolving his financial issues or maintaining a viable debt management plan.
- The applicant's financial problems were ongoing and not adequately mitigated by recent counseling efforts.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(c)appliedEvidence of Receiving Counseling for the ProblemThe applicant received financial counseling and established a budget.
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlWhile the applicant's financial issues began with his separation, he did not act responsibly in resolving debts.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsThe applicant did not actively pursue resolution of debts until the security clearance process began.
- AG ¶ 20(e)rejectedReasonable Basis to Dispute Legitimacy of DebtsThe applicant did not provide documentation to support disputes of certain debts.
Key Rule Quoted
“Any doubt concerning personnel being considered for access to classified information will be resolved in favor of national security.”
Procedural Posture
- SOR issuedApr 29, 2008
- Answer filedMay 13, 2008
- Hearing heldSep 22, 2008
- Decision dateOct 28, 2008
Cite For
- Financial Irresponsibility as a Disqualifying Factor Under Guideline F
- The Importance of Demonstrating a Viable Debt Management Plan
- The Impact of Ongoing Financial Issues on Security Clearance Eligibility