Summary
A 40-year-old human resources specialist for a defense contractor was denied a security clearance under Guideline F, Financial Considerations. The denial stemmed from 13 unresolved debts totaling $22,574, despite a Chapter 7 bankruptcy discharge in June 1999. Specific allegations included a $26 medical collection debt and a $459 state tax lien from tax year 2000.
The decision cited the applicant's failure to demonstrate good-faith efforts to repay or resolve overdue debts. Disqualifying conditions under Adjudicative Guideline (AG) ¶ 19(a) and AG ¶ 19(c) were raised, indicating a history of not meeting financial obligations and an inability to satisfy debts.
Although mitigating conditions under AG ¶ 20(a) through AG ¶ 20(e) were considered, the judge found insufficient evidence of responsible actions. The applicant's ongoing financial problems, poor self-control, and lack of adequate contact with creditors ultimately led to the denial of eligibility for access to classified information.
Why the Applicant Was Denied
- The applicant failed to demonstrate a good-faith effort to repay overdue creditors or resolve debts.
- The applicant's financial problems were ongoing and indicative of poor self-control and judgment.
- The applicant did not maintain adequate contact with creditors or take 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(a)rejectedBehavior Happened Long Ago or InfrequentlyThe applicant did not establish that his financial problems are unlikely to recur.
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlInsufficient evidence to show the applicant acted responsibly under the circumstances.
- AG ¶ 20(c)rejectedReceived Counseling for the ProblemNo clear indications that the financial problems are being resolved.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay CreditorsThe applicant did not act aggressively to resolve his debts.
- AG ¶ 20(e)rejectedReasonable Basis to Dispute DebtsThe applicant did not provide evidence of actions to dispute debts.
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the adjudicative guidelines.”
Procedural Posture
- SOR issuedNov 23, 2009Another copy issued on February 26, 2010.
- Answer filedMar 19, 2010Applicant requested a hearing.
- Hearing heldJun 3, 2010Applicant appeared pro se.
- Decision dateSep 24, 2010
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations Under Guideline F
- Insufficient Evidence of Responsible Financial Behavior
- Impact of Ongoing Financial Issues on Security Clearance Eligibility