Summary
A 37-year-old software design engineer was denied a security clearance under Guideline F, Financial Considerations, due to significant delinquent debts and a history of bankruptcy. The Statement of Reasons (SOR) detailed multiple outstanding debts, including a $378 medical account, a $26,386 judgment from 2008, and a $5,042 debt in collection. Other alleged debts included a $1,079 account, a $171 debt, and a $4,499 account, all in collection and unpaid as of February 9, 2009.
The applicant also faced allegations regarding a $100,000 mortgage account that was delinquent and in collection, and responsibility for approximately $550,000 in delinquent consumer and utility debts, including a $384,802 foreclosed mortgage with a past due balance of about $46,460. While the applicant disputed some debts, such as a $70 and a $352 debt, and believed one was a duplicate, the overall financial picture raised concerns.
The denial was based on the applicant's failure to present a clear plan for resolving substantial delinquent debts. The financial difficulties, dating back to at least 2001, indicated a long-standing issue with financial management. The applicant's actions, including incurring additional debt while unable to meet existing obligations, were deemed irresponsible, leading to the denial of the security clearance.
Why the applicant was denied
- The applicant failed to demonstrate a clear plan to resolve substantial delinquent debts.
- The applicant's financial difficulties date back to at least 2001, indicating a long-standing issue with financial management.
- The applicant's actions, including incurring additional debt while unable to meet existing obligations, were deemed irresponsible.
Conditions referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedUnresolved Financial Delinquency Occurred Long Ago or InfrequentlyThe applicant's financial difficulties are ongoing and date back to at least 2001.
- AG ¶ 20(b)rejectedConditions Resulting in Financial Problems Were Largely Beyond the Person's ControlWhile some circumstances were beyond control, the applicant also incurred additional debt irresponsibly.
- AG ¶ 20(c)rejectedEvidence of Receiving Counseling for Financial ProblemsThe applicant has not received consumer credit counseling.
- AG ¶ 20(d)rejectedInitiated Good-faith Effort to Repay Overdue CreditorsThe applicant has not demonstrated a systematic plan to resolve debts.
- AG ¶ 20(e)rejectedReasonable Basis to Dispute Legitimacy of Past-due DebtThe applicant did not provide sufficient documentation to dispute debts.
Key rule quoted
“"Failure or inability to live within one’s means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual’s reliability, trustworthiness and ability to protect classified information."”
Procedural posture
- SOR issuedJul 24, 2009
- Answer filedAug 26, 2009
- Hearing heldNov 9, 2009
- Decision dateJan 26, 2010
Cite for
- Denial of Security Clearance Due to Unresolved Financial Delinquencies
- Long-standing Financial Difficulties Impacting Reliability Under Guideline F
- Insufficient Evidence of Responsible Financial Management and Planning