Summary
A 54-year-old male applicant with a high school education was denied a security clearance under Guideline F (Financial Considerations) due to a history of significant financial issues. The Statement of Reasons detailed several delinquent debts, including approximately $4,515, $2,707, and a collection account totaling about $14,400. Additionally, a delinquent medical debt of approximately $492 was cited, alongside a Chapter 7 bankruptcy filed in January 1996. One debt, approximately $205 to an electric company, had been satisfied.
Despite a combined household income of approximately $80,000, the applicant admitted to ongoing financial difficulties and living paycheck to paycheck. Disqualifying conditions under Adjudicative Guideline (AG) ¶ 19(a) and AG ¶ 19(c) were raised.
While mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d), and AG ¶ 20(e) were considered, the clearance was denied. The denial was based on the applicant's failure to provide documentation proving the satisfaction of several debts, including a medical debt and a credit card debt, and his lack of financial counseling, which collectively indicated poor financial management and raised concerns about his judgment and reliability.
Why the Applicant Was Denied
- The applicant admitted to a history of financial difficulties, including substantial delinquent debts and a Chapter 7 bankruptcy.
- He failed to provide documentation proving the satisfaction of several debts, including a medical debt and a credit card debt.
- The applicant had not received financial counseling and lived paycheck to paycheck, indicating 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)rejectedUnresolved Financial Delinquency Occurred so Long Ago, Was Infrequent, or Unlikely to RecurThe applicant's financial issues have persisted for over a decade.
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlThe applicant's financial difficulties continued despite stable employment and income.
- AG ¶ 20(c)rejectedEvidence of Receiving Counseling for the ProblemThe applicant had not received any financial counseling.
- AG ¶ 20(d)rejectedInitiated a Good-faith Effort to Repay Overdue CreditorsThe applicant had not made arrangements to pay significant debts.
- AG ¶ 20(e)rejectedReasonable Basis to Dispute the Legitimacy of the Past-due DebtThe applicant did not provide sufficient evidence to dispute the debts.
Key Rule Quoted
“Failure or inability to live within one’s means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual’s reliability, trustworthiness and ability to protect classified information.”
Procedural Posture
- SOR issuedJul 14, 2008
- Answer filedAug 11, 2008
- Hearing heldSep 22, 2008
- Decision dateOct 20, 2008
Cite For
- Denial of Security Clearance Due to Unresolved Financial Delinquencies Under Guideline F
- Impact of Financial Management on Security Clearance Eligibility
- Failure to Demonstrate Good-faith Efforts to Resolve Debts as a Basis for Denial