Summary
The applicant, a 44-year-old married father of three, sought a security clearance under Guideline F due to significant financial issues, including eight delinquent debts totaling $247,151, exacerbated by his wife's serious medical conditions. Despite demonstrating some responsible actions, the judge found that the applicant's financial difficulties were not sufficiently mitigated, leading to a denial of his security clearance application.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant owes $386 as the last payment on a leased vehicle he turned in at the end of the lease term in March 2007. This debt has not been paid, though Applicant would pay it if he had the money to do so. This debt was included in his 2007 bankruptcy filing (1.a). Applicant owes $17,292 to a credit card company for debts incurred as part of operating his photography business. He used the card to live on in 2006 as his business declined. This debt is included in his 2007 bankruptcy filing. It has not been paid (1.b). Applicant owes four debts to a credit union with which he formerly did business. The first debt is for $38,503 on an equity line of credit on his former home, $1,826 on an auto loan, and $212 on an overdraft protection account, and $4,756 for business equipment for his former photography business. None of these debts have been paid. All were included in his bankruptcy petition filing (1.c). Applicant owes $179,850 on the mortgage due on his home which was foreclosed in 2007. Applicant has not received any correspondence from the bank on this debt. This debt was included in the 2007 bankruptcy filing (1.d). Applicant owes $82 owed to a collector. Applicant denied that debt, and the credit report of October 27, 2008, shows the balance on this debt as zero. It has been paid (1.e). Applicant owes federal and state income taxes for 2006. He filed the tax returns, but did not have the money to pay the taxes with the return after he changed his accounting system from accrual to cash basis. He has installment payment agreements with both tax collection agencies. He pays the federal tax at the rate of $150 monthly. The original amount owed was about $9,500, and now is about $7,000. He pays the state tax agency $75 monthly on a debt of $1,200 (1.f). Applicant owes about $5,000 in medical debts. He recently repaid $300 in co-payment bills. He tries to pay the smaller bills. The larger hospital bills of $1,500 to one hospital, for example, he cannot repay now (1.g). Applicant owes $308 to a telephone company. He has not paid that bill, and has not had contact with the creditor for over a year (1.h).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(b), AG ¶ 20(c). The decision turned on the following: The applicant has eight delinquent debts totaling $247,151, indicating an inability to meet financial obligations; The applicant's financial issues predated his wife's medical problems, undermining claims of financial hardship due to her illness; The applicant did not demonstrate a clear plan to resolve his debts or take timely action to mitigate his financial situation.
Why the Applicant Was Denied
- The applicant has eight delinquent debts totaling $247,151, indicating an inability to meet financial obligations.
- The applicant's financial issues predated his wife's medical problems, undermining claims of financial hardship due to her illness.
- The applicant did not demonstrate a clear plan to resolve his debts or take timely action to mitigate his financial situation.
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 Largely Beyond the Person's ControlWhile some financial problems arose from his wife's medical issues, the applicant's financial decline began before her diagnosis.
- AG ¶ 20(c)rejectedReceived or Receiving Counseling for the ProblemThe applicant did not initiate a good-faith effort to repay overdue creditors or resolve debts without bankruptcy.
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 issuedMay 13, 2008
- Answer filedMay 22, 2008
- Hearing heldNov 6, 2008
- Decision dateDec 31, 2008
Cite For
- Financial Difficulties Impacting Security Clearance Eligibility
- Failure to Mitigate Financial Obligations Under Guideline F
- Whole Person Concept in Evaluating Security Clearance Cases