Summary
A 41-year-old systems engineer was denied a security clearance under Guideline F (Financial Considerations) due to a history of financial difficulties, including unresolved debts and a recent bankruptcy filing. The Statement of Reasons (SOR) included allegations of two specific debts, one for $462 and another for $118, both of which the applicant subsequently settled and paid.
Despite a significant household income, the applicant's financial problems were largely considered within her control, particularly concerning the management of a rental property. Disqualifying conditions under Guideline F, specifically AG ¶ 19(a) and AG ¶ 19(c), were raised.
While mitigating conditions AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d), and AG ¶ 20(e) were applied, the denial was ultimately based on the applicant's history of not meeting financial obligations, the large unresolved judgment, and insufficient evidence of a financial plan or good-faith efforts to repay debts.
Why the Applicant Was Denied
- Applicant has a history of not meeting financial obligations, including a recent bankruptcy and a large unresolved judgment.
- Applicant did not provide sufficient evidence of a financial plan or good-faith efforts to repay debts.
- The applicant's financial problems were largely within her control, particularly regarding the management of her rental property.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlWhile some circumstances were beyond her control, the applicant had control over her decision to not sell the rental property.
- AG ¶ 20(c)rejectedThe Person Has Received or Is Receiving Counseling for the ProblemThe applicant has not demonstrated a financial plan or budget.
- AG ¶ 20(d)rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant did not make a good-faith effort to repay her creditors.
- AG ¶ 20(e)notedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due Debt
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 issuedJul 30, 2009
- Answer filedSep 16, 2009
- Hearing heldDec 3, 2009
- Decision dateJan 12, 2010
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations Under Guideline F
- Insufficient Evidence of Good-faith Efforts to Resolve Debts
- Impact of Personal Financial Management on Security Clearance Eligibility