Summary
A 40-year-old SharePoint developer and former Army Sergeant First Class was denied a security clearance under Guideline F, Financial Considerations, due to significant and unresolved financial issues. The applicant had 19 delinquent accounts totaling approximately $88,579. These included various collection accounts for apartment complexes, utility bills, medical expenses, and telephone and cable services, with some dating back to 2003.
Additionally, the applicant had several charged-off credit card accounts, an $8,729 bank signature loan in collection, a $16,805 debt from an automobile repossession, and a $46,640 delinquent student loan. A Chapter 13 bankruptcy filing was dismissed for nonpayment, and the applicant had not made efforts to resolve the delinquent debts since then.
Despite the presence of some mitigating circumstances related to personal hardships, the judge determined that the applicant failed to demonstrate responsible financial management or sufficient efforts to resolve his debts. The decision highlighted that the applicant's financial issues were exacerbated by poor financial management, even with adequate income, leading to the denial of the security clearance.
Why the Applicant Was Denied
- The applicant has 19 delinquent accounts totaling approximately $88,579, indicating an inability to manage financial obligations.
- The applicant's Chapter 13 bankruptcy was dismissed for nonpayment, and he has made no attempts to resolve his delinquent debts since then.
- The applicant's financial issues were exacerbated by poor financial management, despite having sufficient income to meet his expenses.
Conditions Referenced
- FC DC 19(a)raisedInability or Unwillingness to Satisfy Debts
- FC DC 19(c)raisedHistory of Not Meeting Financial Obligations
- FC DC 19(e)raisedConsistent Spending Beyond One’s Means
- FC MC 20(b)appliedConditions Largely Beyond the Person's ControlThe applicant incurred significant expenses related to custody of his daughter and his oldest daughter's emotional issues.
- FC MC 20(c)rejectedReceived Counseling for the ProblemThe applicant consulted a credit counseling agency but did not follow through with any suggestions.
- FC MC 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsThe applicant has made no attempts to resolve his delinquent debts since his bankruptcy was dismissed.
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 issuedMar 27, 2009
- Answer filedApr 18, 2009
- Hearing heldJun 17, 2009Applicant waived the 15-day notice requirement.
- Decision dateJul 24, 2009
Cite For
- Financial Management Issues Under Guideline F
- Impact of Delinquent Debts on Security Clearance Eligibility
- Burden of Proof for Mitigating Financial Conditions