Summary
A 39-year-old applicant was denied a security clearance under Guideline F (Financial Considerations) due to approximately $43,000 in delinquent debt. The Statement of Reasons detailed multiple outstanding debts, including those owed to a check cashing company, several medical institutions, utility companies, a child care center, and for a late car note. One debt was satisfied through wage garnishment.
Disqualifying conditions under Guideline F were raised, specifically concerning a history of not meeting financial obligations and an inability or unwillingness to satisfy debts. While mitigating conditions were considered, such as the financial problems stemming from a divorce, the applicant's security clearance was ultimately denied.
The denial was based on the applicant's failure to mitigate the government's financial security concerns. He had not filed his 2008 state and federal income tax returns, nor had he filed for extensions. Despite his financial difficulties being primarily attributed to his divorce, he did not demonstrate sufficient responsible actions to resolve his outstanding debts.
Why the Applicant Was Denied
- The applicant failed to mitigate the government's financial considerations security concern.
- He had not filed his state and federal income tax returns for 2008, nor had he filed for extensions.
- His financial problems were primarily due to his divorce, but he did not demonstrate responsible actions to address his debts.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlThe applicant's financial issues were not solely due to circumstances beyond his control.
- AG ¶ 20(c)rejectedReceived or Is Receiving Counseling for the ProblemThe applicant consulted a credit counselor shortly before the hearing, but this was not sufficient to demonstrate resolution of the issues.
- AG ¶ 20(d)rejectedInitiated a Good-faith Effort to Repay Overdue CreditorsThe applicant's efforts were limited and did not show a comprehensive plan to address all debts.
- AG ¶ 20(e)appliedReasonable Basis to Dispute the Legitimacy of the Past-due DebtThe applicant successfully disputed one debt related to a daycare center.
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 issuedFeb 16, 2009
- Answer filedApr 9, 2009
- Hearing heldJul 17, 2009
- Decision dateSep 14, 2009
Cite For
- Failure to File Tax Returns as a Disqualifying Factor Under Guideline F
- Insufficient Evidence of Financial Rehabilitation Despite Some Debt Satisfaction
- Disputing Debts Can Mitigate Specific Allegations Under Financial Considerations