Summary
A 34-year-old production manager for a Department of Defense contractor was denied a security clearance under Guideline F, Financial Considerations, due to significant and ongoing financial instability. The applicant's financial difficulties were attributed to a hurricane, a divorce, and an alcoholic spouse.
The Statement of Reasons detailed several outstanding debts, including an unpaid bank line of credit for $26,850, credit card debts of $2,522 and $14,947, and an unpaid financing obligation of $5,343. Additionally, a $295 medical bill remained unpaid, with the applicant's dispute not verified as reasonable. While some alleged debts, such as two credit card accounts for $733 each and a store account for $442, were not in the applicant's name or on his credit reports, the remaining substantial debts were directly attributed to him.
Despite the applicant's efforts, including a Chapter 13 bankruptcy filing that was later dismissed for non-payment, the judge found insufficient progress in resolving the debts. The financial problems were deemed recent and ongoing, indicating a lack of financial stability and poor financial management, ultimately leading to the denial of the security clearance.
Why the Applicant Was Denied
- The applicant has significant unpaid debts and has not made sufficient progress in resolving them.
- The financial problems are recent and ongoing, indicating a lack of financial stability.
- The applicant's previous bankruptcy was dismissed for non-payment, reflecting poor financial management.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was Infrequent, or Unlikely to RecurThe applicant's financial issues are recent and ongoing.
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlWhile some conditions were beyond his control, the applicant has not resolved his debts.
- AG ¶ 20(c)appliedReceived or Receiving Counseling for the ProblemThe applicant has undergone debt counseling but has not made sufficient progress.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsThe applicant does not have an established payment plan for major debts.
- AG ¶ 20(e)rejectedReasonable Basis to Dispute the Legitimacy of the Past-due DebtThe applicant did not provide sufficient evidence to support disputes on debts.
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedFeb 26, 2009
- Answer filedApr 19, 2009Additional response on May 12, 2009
- Hearing heldAug 26, 2009
- Decision dateNov 24, 2009
Cite For
- Financial Instability as a Basis for Security Clearance Denial
- Impact of Personal Circumstances on Financial Obligations
- The Importance of Resolving Debts for Security Clearance Eligibility