Summary
A 41-year-old mail clerk for a defense contractor was denied a security clearance under Guideline F (Financial Considerations) due to 13 delinquent debts exceeding $30,000. These debts included medical expenses not covered by insurance, a deficiency from an automobile repossession, delinquent credit cards, and unpaid rent that led to evictions, one of which resulted in a judgment. The applicant had made no payments on any of these debts and lacked the immediate means to begin repayment plans or accept settlement offers.
The applicant attributed his financial difficulties primarily to three lengthy periods of unemployment and chronic underemployment. He expressed an intent to apply for a hardship liquidation of his employer-matched retirement account in six months to address some debts and requested a year to resolve his financial issues. Additionally, a friend allowed him to reside in an apartment, with payment contingent on receiving damages from a civil suit related to an automobile accident.
Despite acknowledging his debts and expressing an intent to repay, the applicant's security clearance was denied. The decision highlighted his lack of a concrete plan to address the debts and the unlikelihood of his financial situation improving in the near future, leading to the conclusion that the financial concerns were not sufficiently mitigated.
Why the Applicant Was Denied
- The applicant has 13 delinquent debts totaling over $30,000, which he acknowledged.
- He lacks the means to initiate repayment plans or take advantage of settlement offers.
- There is no evidence of a plan in place to address his debts, and he is unlikely to improve his financial situation soon.
Conditions Referenced
- F.1.araisedInability or Unwillingness to Satisfy Debts
- F.1.craisedA History of Not Meeting Financial Obligations
- F.2.brejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlWhile some debts were due to circumstances beyond his control, the applicant's current financial situation is unlikely to improve.
- F.2.drejectedGood-faith Effort to Repay Overdue CreditorsThe applicant has not made any payments on his debts and lacks a concrete plan to address them.
Key Rule Quoted
“The government has a compelling interest in ensuring each Applicant possesses the requisite judgement, reliability, and trustworthiness of those who must protect national interests as their own.”
Procedural Posture
- SOR issuedJan 26, 2009
- Answer filedMar 24, 2009
- Hearing heldJun 4, 2009
- Decision dateJun 30, 2009
Cite For
- Denial of Security Clearance Due to Significant Financial Obligations Under Guideline F
- Lack of Evidence for Financial Rehabilitation Efforts
- Impact of Chronic Unemployment on Financial Stability