Summary
A 38-year-old independent contractor was denied a security clearance under Guideline F, Financial Considerations, due to significant financial issues. The applicant had multiple delinquent accounts totaling over $51,000, including a $2,158 judgment from April 2007, a $131 tax lien from March 1994, and various credit card, utility, and other accounts placed for collection or charged off. Additionally, he owed $9,537 in delinquent child support to State A and $10,613 to State B.
Disqualifying conditions related to financial irresponsibility and an inability to satisfy debts were raised. While mitigating conditions were considered, including circumstances related to his divorce and periods of unemployment, these were insufficient to overcome the concerns.
The denial was based on the applicant's failure to demonstrate responsible financial management or provide a clear plan to resolve his debts. His financial irresponsibility and lack of action to address the outstanding obligations raised concerns regarding his reliability and trustworthiness, leading to the denial of his security clearance.
Why the Applicant Was Denied
- The applicant has multiple delinquent accounts totaling over $51,000, including significant child support arrears.
- He failed to provide evidence of a definitive plan to resolve his financial issues or make payments towards his debts.
- The applicant's financial irresponsibility and lack of action to address his debts raised concerns about his reliability and trustworthiness.
Conditions Referenced
- FC DC 19(a)appliedInability or Unwillingness to Satisfy Debts
- FC DC 19(c)appliedA History of Not Meeting Financial Obligations
- FC MC 20(b)appliedConditions Largely Beyond the Person's ControlThe applicant's divorce and periods of unemployment contributed to his financial problems.
- FC MC 20(c)rejectedReceived Counseling for the ProblemThe applicant consulted a credit counseling agency but did not establish a payment plan.
- FC MC 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsThe applicant made no payments towards any of his delinquent accounts.
- FC MC 20(e)rejectedReasonable Basis to Dispute the Legitimacy of the DebtThe applicant claimed disputes but provided no documentation to substantiate them.
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedJun 10, 2009
- Answer filedJul 9, 2009
- Hearing heldAug 25, 2009
- Decision dateSep 21, 2009
Cite For
- Financial Irresponsibility Under Guideline F
- Impact of Unresolved Debts on Security Clearance Eligibility
- Consideration of Mitigating Circumstances in Financial Cases