Summary
The applicant, a 42-year-old rigger for a Department of Defense contractor, faced security clearance denial under Guideline F due to financial issues, including a history of delinquent debts and a dismissed bankruptcy case. Despite some efforts to manage his finances, the judge found insufficient evidence of resolution or control over his financial obligations, leading to the conclusion that security concerns were not mitigated.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant has a judgment against him in the amount of $16,000, which he has agreed to repay through garnishment. He has paid $4,113 on the judgment since January 2009 and anticipates it will be paid in full by October 2009 (1.a). Applicant has an unpaid debt of $265 to a creditor for a bill that he claims he paid before moving (1.b). Applicant has an unpaid debt of $1,200 for medical bills related to injections for his back injury (1.c). Applicant has an unpaid debt of $1,000 for medical bills related to his back injury (1.d). Applicant has an unpaid debt of $1,500 for a cell phone cancellation fee (1.e). Applicant has an unpaid debt of $1,200 for a medical bill (1.f). Applicant has an unpaid debt of $1,000 for a medical bill (1.g). Applicant has an unpaid debt of $1,500 for a medical bill (1.h). Applicant has an unpaid debt of $1,000 for a medical bill (1.i). Applicant has an unpaid debt of $1,200 for a medical bill (1.j). Applicant has an unpaid debt of $1,500 for a medical bill (1.k). Applicant has an unpaid debt of $1,000 for a medical bill (1.l). Applicant has an unpaid debt of $1,200 for a medical bill (1.m). Applicant has an unpaid debt of $1,500 for a medical bill (1.n). Applicant has an unpaid debt of $1,000 for a medical bill (1.o). Applicant has an unpaid debt of $1,200 for a medical bill (1.p). Applicant has an unpaid debt of $1,500 for a medical bill (1.q). Applicant has an unpaid debt of $1,000 for a medical bill (1.r). Applicant has an unpaid debt of $1,200 for a medical bill (1.s). Applicant has an unpaid debt of $1,500 for a medical bill (1.t). Applicant has an unpaid debt of $1,000 for a medical bill (1.u). Applicant has an unpaid debt of $1,200 for a medical bill (1.v). Applicant has an unpaid debt of $1,500 for a medical bill (1.w).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(b), AG ¶ 20(d). The decision turned on the following: The applicant has a history of delinquent debts that he has not resolved; The applicant's Chapter 13 bankruptcy was dismissed due to non-compliance with the payment plan; The applicant did not provide evidence of financial counseling or a practical plan to resolve most debts.
Why the Applicant Was Denied
- The applicant has a history of delinquent debts that he has not resolved.
- The applicant's Chapter 13 bankruptcy was dismissed due to non-compliance with the payment plan.
- The applicant did not provide evidence of financial counseling or a practical plan to resolve most 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)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlThe applicant's financial problems became unmanageable after a back injury that resulted in loss of income.
- AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue CreditorsThe applicant agreed to a garnishment plan to repay a judgment debt.
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedMar 25, 2009
- Answer filedApr 30, 2009
- Hearing heldJul 22, 2009
- Decision dateAug 14, 2009
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Impact of Dismissed Bankruptcy on Security Clearance Eligibility
- Consideration of Mitigating Conditions Related to Financial Difficulties