Summary
A 36-year-old technical writer for a Department of Defense contractor was denied a security clearance under Guideline F (Financial Considerations) due to over $55,000 in unpaid debts. These debts included $8,825 in medical bills, with $1,536 of those being over five years old, and a $22,850 outstanding balance from a repossessed vehicle. The applicant also had numerous other unpaid debts, some of which were newer.
While the applicant acknowledged her financial issues, attributing some to serious medical problems, a recent divorce, and periods of underemployment, she failed to provide sufficient evidence of financial rehabilitation. Although she retained a credit counseling service, stated she had a budget and repayment plan, and was in a forbearance plan for her education debt, the record lacked documentation of these efforts.
Specifically, the applicant did not provide copies of her budget, letters to creditors, repayment plan, or evidence of payments made. The decision noted that her debts continued to accumulate, and she had not demonstrated a significant change in her financial management, leading to the denial of her security clearance.
Why the Applicant Was Denied
- The applicant accumulated significant delinquent debt over the last seven years that remains unpaid.
- The applicant did not provide evidence of a repayment plan or financial stability despite seeking credit counseling.
- The applicant's debts continue to accumulate, indicating a lack of significant change in her financial management.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)appliedConditions Largely Beyond the Person's ControlSome of the applicant’s financial problems arose from serious medical issues and a recent divorce.
- AG ¶ 20(c)rejectedReceived Counseling for the ProblemThe applicant did not provide evidence that her debts are being resolved or that she is financially sound.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsThe applicant did not provide evidence of payments made under her repayment plan.
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedNov 12, 2008
- Answer filedDec 8, 2008Applicant requested a decision on the written record.
- Hearing held—No hearing; decision based on written record.
- Decision dateMar 23, 2009
Cite For
- Financial Considerations Under Guideline F
- Impact of Unresolved Debts on Security Clearance Eligibility
- Importance of Providing Evidence of Financial Management and Repayment Plans