Summary
A 49-year-old systems engineer was denied a security clearance under Guideline F (Financial Considerations) due to significant unresolved debts totaling approximately $96,000. The Statement of Reasons detailed numerous financial issues, including a Chapter 7 Bankruptcy filed in May 1997 and discharged in September 1997.
Specific allegations included multiple charged-off credit card debts ranging from $617 to $2,567, various medical debts in collection, and delinquent accounts for clothing, department stores, jewelry, and phone services. Additionally, the applicant had charged-off student loans totaling $18,834 and two delinquent debts for the same creditor amounting to $847 and $1,859 each. The most substantial debt was $61,000 in child support payments in collection.
The denial was based on the applicant's history of significant unresolved debts, including the child support arrears, and an admitted pattern of accumulating delinquent debts after his bankruptcy discharge. Despite some recent financial stability, the judge found that the applicant had not made payments on the majority of his delinquent debts, raising concerns about his reliability and judgment.
Why the Applicant Was Denied
- The applicant has a history of significant unresolved debts totaling approximately $96,000, including substantial child support arrears.
- The applicant admitted to accumulating delinquent debts after a bankruptcy discharge, indicating a pattern of financial irresponsibility.
- The applicant failed to demonstrate that he has made payments on the majority of his delinquent debts, raising concerns about his current reliability and judgment.
Conditions Referenced
- FC DC ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- FC DC ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- FC MC ¶ 20(a)rejectedBehavior Happened so Long Ago, Was Infrequent, or Unlikely to RecurThe applicant's ongoing delinquent debts indicate a pattern of financial irresponsibility.
- FC MC ¶ 20(b)rejectedConditions That Resulted in Financial Problems Were Largely Beyond the Person's ControlWhile the applicant's divorce impacted his finances, he has been employed for over five years and has not made payments on delinquent debts.
- FC MC ¶ 20(c)rejectedThe Person Has Received or Is Receiving Counseling for the ProblemThere is no evidence that the applicant sought or received financial counseling.
Key Rule Quoted
“A person who seeks access to classified information enters into a fiduciary relationship with the government predicated upon trust and confidence.”
Procedural Posture
- SOR issuedDec 19, 2008
- Answer filedFeb 3, 2009
- Hearing heldApr 22, 2009
- Decision dateMar 30, 2009
Cite For
- Financial Irresponsibility as a Disqualifying Factor Under Guideline F
- Impact of Unresolved Debts on Security Clearance Eligibility
- The Importance of Proactive Debt Management in Security Clearance Evaluations