Summary
The applicant, a 30-year-old Simulation Technician with an Associate's Degree, faced issues under Guideline F (Financial Considerations) due to approximately $27,797 in delinquent debts. Despite being employed full-time for over a year, he had not resolved any debts and was in the process of filing for Chapter 7 bankruptcy. The judge found insufficient evidence of financial rehabilitation and determined that the applicant's financial irresponsibility raised concerns about his reliability and trustworthiness, leading to a denial of his security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: A debt owed to a creditor in the amount of $346.00 remains outstanding. This was a medical bill he received while he was out of work and had no health insurance (1.a). A debt owed to a creditor in the amount of $94.00 remains outstanding. Applicant has no idea what the debt is for, but plans to pay it when he finds out (1.b). A debt to a creditor in the amount of $2,184.00 for a medical bill remains outstanding (1.c). Two student loans the Applicant obtained for educational expenses remain outstanding in the amounts of $5,564.00 and $7,231.00, respectively (1.d). Two student loans the Applicant obtained for educational expenses remain outstanding in the amounts of $5,564.00 and $7,231.00, respectively (1.e). A debt owed to a creditor in the amount of $7,197.00 for a repossessed vehicle remains outstanding (1.f). A debt owed to a creditor in the amount of $1,106.00 remains outstanding. Applicant states that the debt is his wife’s (1.g). A debt owed to a creditor in the amount of $3,990.00 remains outstanding. Applicant believes the debt is charged off and he has no idea who is collecting on the account (1.h). A debt owed to a creditor for an unpaid medical bill in the amount of $121.00 also remains outstanding (1.i).
The judge denied the clearance. The government raised disqualifying conditions 19(a), 19(c). The judge applied mitigating conditions 20(b). The decision turned on the following: The applicant admitted to nine delinquent debts totaling approximately $27,797; He had not resolved any of his debts despite being employed full-time for over a year; The applicant's promise to take remedial measures was not considered sufficient evidence of reform or rehabilitation.
Why the Applicant Was Denied
- The applicant admitted to nine delinquent debts totaling approximately $27,797.
- He had not resolved any of his debts despite being employed full-time for over a year.
- The applicant's promise to take remedial measures was not considered sufficient evidence of reform or rehabilitation.
Conditions Referenced
- 19(a)appliedInability or Unwillingness to Satisfy Debts
- 19(c)appliedA History of Not Meeting Financial Obligations
- 20(b)rejectedThe Condition That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlAlthough the applicant's financial issues were partly due to unemployment, he had not made efforts to resolve his debts.
Key Rule Quoted
“The adjudicative process is an examination of a sufficient period of a person’s life to make an affirmative determination that the person is an acceptable security risk.”
Procedural Posture
- SOR issuedJun 12, 2009
- Answer filed—Date uncertain
- Hearing heldOct 6, 2009
- Decision dateJan 25, 2010
Cite For
- Financial Irresponsibility Under Guideline F
- Insufficient Evidence of Financial Rehabilitation
- Impact of Unresolved Debts on Security Clearance Eligibility