Summary
A 30-year-old defense contractor employee was denied a security clearance under Guideline F (Financial Considerations) due to approximately $50,000 in delinquent debts. The Statement of Reasons detailed several specific financial obligations, including a $130 credit card debt, a $6,553 credit card debt, a $253 charged-off phone account, and a $29,311 delinquent second mortgage.
Additional debts included a $399 past-due auto loan, a $3,020 past-due primary mortgage, a $10,601 charged-off auto loan from a 2008 voluntary repossession, and an $830 delinquent TV account. These issues raised Disqualifying Conditions AG ¶ 19(a) and AG ¶ 19(c).
Despite the applicant's stated intention to file for Chapter 13 bankruptcy, this action was not officially completed, and no consistent track record of payments or a concrete repayment plan was established. The administrative judge concluded that the applicant did not sufficiently mitigate the security concerns, leading to the denial of the security clearance.
Why the Applicant Was Denied
- The applicant accumulated approximately $50,000 in delinquent debts, indicating an inability to meet financial obligations.
- The applicant's plan to file for Chapter 13 bankruptcy was not officially filed, and he had not established a track record of payments.
- The applicant did not provide sufficient evidence of financial counseling or a concrete repayment plan for 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(b)appliedConditions Largely Beyond the Person's ControlThe applicant experienced periods of unemployment that contributed to his financial issues.
- AG ¶ 20(e)appliedDispute of Legitimacy of Past Due DebtThe applicant provided documentation that his student loans were in forbearance.
- AG ¶ 20(a)rejectedBehavior Occurred Long Ago or InfrequentlyThe applicant still has significant unresolved delinquent debts.
- AG ¶ 20(c)rejectedReceived or Receiving CounselingThe applicant has not received formal financial counseling.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsThe applicant's efforts to resolve debts were insufficient and not documented.
Key Rule Quoted
“Any doubt concerning personnel being considered for access to classified information will be resolved in favor of national security.”
Procedural Posture
- SOR issuedDec 8, 2009
- Answer filedDec 28, 2009
- Hearing held—Decision made on the record without a hearing.
- Decision dateMar 30, 2010
Cite For
- Denial of Security Clearance Due to Significant Unresolved Financial Issues
- Insufficient Evidence of Financial Responsibility Despite Intentions to File for Bankruptcy
- Application of the Whole Person Concept in Evaluating Financial Considerations