Summary
A 30-year-old project manager was denied a security clearance under Guideline F (Financial Considerations) due to significant and unresolved financial issues. The Statement of Reasons detailed 15 delinquent accounts and two unpaid judgments, totaling approximately $48,000. These included multiple medical and telephone service collections, charged-off credit cards, university and Department of Education collections, and six past-due Sallie Mae student loans.
Disqualifying conditions were raised concerning a history of not meeting financial obligations and an inability or unwillingness to satisfy debts. While mitigating conditions related to the financial problems not being recent and the applicant having initiated a good-faith effort to resolve the debt were considered, they were ultimately insufficient.
The denial was based on the applicant's history of financial problems, including the two unpaid judgments and numerous delinquent accounts. Despite being employed full-time for over three years, the applicant had made only minimal payments totaling $1,000 on his debts. The judge found insufficient evidence of a meaningful track record of debt repayment or a credible plan to resolve the outstanding financial issues.
Why the Applicant Was Denied
- The applicant has a history of financial problems, including two unpaid judgments and numerous delinquent accounts.
- The applicant made only minimal payments on his debts, totaling $1,000, despite being employed full-time for over three years.
- The applicant failed to demonstrate a meaningful track record of debt repayment or a credible plan to resolve his financial issues.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant made recent payments on his student loans, indicating a good-faith effort.
- AG ¶ 20(b)appliedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlThe applicant's financial issues were exacerbated by a personal injury and child support obligations.
Key Rule Quoted
“An applicant is not required to be debt free, but is required to manage his finances so as to meet his financial obligations.”
Procedural Posture
- SOR issuedFeb 27, 2009
- Answer filedApr 9, 2009
- Hearing heldJun 16, 2009
- Decision dateJul 31, 2009
Cite For
- Denial of Security Clearance Due to Significant Financial Issues Under Guideline F
- Insufficient Evidence of a Credible Plan to Resolve Financial Problems
- Impact of Personal Circumstances on Financial Obligations