Summary
The applicant, a 57-year-old single woman employed by a defense contractor, sought a security clearance under Guideline F due to significant financial issues. She admitted to over $38,000 in unpaid debts, including judgments and collection accounts, and failed to demonstrate responsible action to resolve her financial difficulties. The judge denied her application, citing a lack of evidence of rehabilitation and the potential for coercion due to her financial situation.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: The Applicant admits that she is indebted to an automobile finance company in the amount of $9,516 for a judgment entered against her in 2002. This debt has not been paid (1.a). The Applicant admits that she is indebted to a credit card company in the amount of at least $839 for a past due account with a balance of approximately $1,332. This debt has not been paid (1.b). The Applicant admits that she is indebted to a collection agency in the amount of $135 for a telephone bill. This debt has not been paid (1.c). The Applicant admits that she is indebted to a second collection agency in the amount of $4,551. This debt has not been paid (1.d). The Applicant admits that she is indebted to a bank in the amount of $1,860. This debt has not been paid (1.e). The Applicant admits that she is indebted to a second bank in the amount of $773. This debt has not been paid (1.f). The Applicant admits that she is indebted to a third bank in the amount of $495. This debt has not been paid (1.g). The Applicant admits that she is indebted to a third collection agency in the amount of $797. This debt has not been paid (1.h). The Applicant admits that she is indebted to a fourth collection agency in the amount of $914. This debt has not been paid (1.i). The Applicant admits that she is indebted to a fifth collection agency in the amount of $34. This debt has not been paid (1.j). The Applicant admits that she is indebted to a sixth collection agency in the amount of $8,069. This debt has not been paid (1.k). The Applicant admits that she is indebted to the sixth collection agency for a separate account in the amount of $9,518. This debt has not been paid (1.l). The Applicant admits that she has owed a tax lien in the amount of $572 since 1999. This debt has not been paid (1.m). The Applicant admits that she filed for Chapter 13 bankruptcy protection in March 2000. The case was dismissed in December 2001. This occurred after the Applicant became unemployed (1.n). The Applicant admits that she considered filing for Chapter 7 bankruptcy protection (1.o).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c). The decision turned on the following: The applicant admitted to over $38,000 in unpaid debts, indicating financial irresponsibility; There was no evidence of a payment plan or any payments made towards her debts; The applicant's claims of future intent to resolve her debts were deemed insufficient.
Why the Applicant Was Denied
- The applicant admitted to over $38,000 in unpaid debts, indicating financial irresponsibility.
- There was no evidence of a payment plan or any payments made towards her debts.
- The applicant's claims of future intent to resolve her debts were deemed insufficient.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedBehavior Happened Long Ago or InfrequentlyThe applicant's financial difficulties are of long standing.
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlThe applicant has been employed since 2003 and did not act responsibly regarding her debts.
- AG ¶ 20(c)rejectedClear Indications That the Problem Is Being ResolvedThe applicant has not taken sufficient action to resolve her past due debts.
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 issuedJun 2, 2009
- Answer filedJun 16, 2009
- Hearing held—Decision made without a hearing.
- Decision dateSep 29, 2009
Cite For
- Financial Irresponsibility Under Guideline F
- Impact of Unpaid Debts on Security Clearance Eligibility
- Insufficient Evidence of Rehabilitation in Financial Matters