Summary
A 43-year-old national account manager was denied a security clearance under Guideline F (Financial Considerations) due to significant unpaid debts totaling approximately $166,000. The applicant admitted to six allegations of financial debt, with only one minor utility bill of $539 settled by a payment of $370 on July 14, 2010.
Specific debts included a $1,030 Homeowner’s Association debt/judgment, an $188 bank debt with no evidence of payment, and substantial mortgage-related obligations. These mortgage debts comprised an $82,980 charged-off mortgage, an $18,737 past-due mortgage, and a $62,282 foreclosure judgment from a 2006 home purchase. The applicant provided no evidence of payment or inquiries regarding these significant mortgage-related debts.
Despite a recent income increase and efforts to seek financial counseling, the applicant failed to demonstrate a concrete plan to address the majority of his substantial debts. The decision noted that his financial difficulties were largely self-imposed, having acquired debts beyond his means during periods of underemployment. Disqualifying conditions under AG ¶ 19(a) and AG ¶ 19(c) were raised, while mitigating conditions under AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), and AG ¶ 20(d) were applied.
Why the Applicant Was Denied
- The applicant admitted to six allegations of financial debt totaling approximately $166,000, with only one minor debt settled.
- The applicant failed to provide evidence of a concrete plan to address the majority of his significant debts, particularly mortgage-related obligations.
- The applicant's financial difficulties were largely self-imposed, as he acquired debts beyond his means during periods of underemployment.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to RecurThe applicant's debts were recent and significant, indicating ongoing financial irresponsibility.
- AG ¶ 20(b)rejectedThe Conditions That Resulted in the Behavior Were Largely Beyond the Person’s ControlThe applicant voluntarily acquired debts during periods of underemployment.
- AG ¶ 20(c)appliedThe Person Has Received or Is Receiving Counseling for the Problem
- AG ¶ 20(d)rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant only addressed a small portion of his debts and lacked a clear strategy for the remainder.
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedFeb 26, 2010
- Answer filedApr 7, 2010
- Hearing heldAug 5, 2010Applicant appeared pro se.
- Decision dateAug 24, 2010
Cite For
- Failure to Demonstrate a Concrete Plan to Address Significant Debts Under Guideline F
- Impact of Self-imposed Financial Obligations on Security Clearance Eligibility
- Importance of Financial Counseling in Mitigating Security Concerns