Summary
A 38-year-old instructional designer was denied a security clearance under Guideline F (Financial Considerations) due to a long history of financial irresponsibility. The applicant had accumulated over $17,000 in delinquent debt, including 12 accounts totaling over $11,000 submitted for collection between February 2006 and April 2008, and a $7,052 charge-off from an automobile repossession. This followed a Chapter 7 bankruptcy discharge in September 2002, which resolved approximately $54,000 in debt. His financial issues dated back to at least 1994, and he received a General Discharge Under Honorable Conditions from the Army due to financial misconduct.
The judge found that the applicant failed to mitigate these concerns. He had not made meaningful efforts to satisfy his delinquent creditors or utilized consumer credit counseling services to resolve his debt. Furthermore, his assertion that he could resolve all delinquent debt within ten months, now that his wife was working full-time, was deemed unconvincing given his 15-year history of financial irresponsibility.
The applicant also failed to provide documentation to support claims that his financial difficulties were due to medical expenses. Ultimately, the judge concluded that the applicant's financial issues raised significant concerns about his reliability and trustworthiness, leading to the denial of his security clearance.
Why the Applicant Was Denied
- Applicant has a history of financial irresponsibility dating back to at least 1994.
- He received a General Discharge Under Honorable Conditions from the Army due to financial misconduct.
- Applicant accumulated over $17,000 in delinquent debt after a Chapter 7 bankruptcy discharge in 2002.
- He did not provide documentation to support claims regarding his financial difficulties being due to medical expenses.
- Applicant has not made meaningful efforts to resolve his delinquent debts.
Conditions Referenced
- DC 19(a)appliedInability or Unwillingness to Satisfy Debts
- DC 19(c)appliedA History of Not Meeting Financial Obligations
Key Rule Quoted
“The objective of the security-clearance process is the fair-minded, commonsense assessment of a person’s trustworthiness and fitness for access to classified information.”
Procedural Posture
- SOR issuedNov 17, 2008
- Answer filedFeb 18, 2009
- Hearing heldJun 2, 2009Reconvened hearing on July 10, 2009
- Decision dateAug 31, 2009
Cite For
- Financial Irresponsibility as a Disqualifying Factor Under Guideline F
- Impact of a History of Delinquent Debt on Security Clearance Eligibility
- Failure to Demonstrate Meaningful Efforts to Resolve Financial Issues as a Basis for Denial