Summary
The applicant, a 56-year-old attorney, sought a security clearance under Guideline F (Financial Considerations) but was denied due to significant unresolved debts totaling approximately $32,400, including a federal tax lien and multiple collection accounts. Despite her claims of financial hardship stemming from her husband's disability and her own underemployment, the judge found insufficient evidence of responsible financial management or efforts to resolve her debts.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: The debt alleged in SOR ¶ 1.a for $12,930 is unpaid. Applicant admits this debt, which is the result of a credit card collection (1.a). Applicant admits, and at the same time, disputes the medical collection bills ($400 total) in SOR ¶¶ 1.b, 1.c, 1.d, and 1.o. Some of the accounts are her husband’s and others are co-pays which she believes she does not have to pay. They remain unpaid (1.b). The debt alleged in SOR ¶ 1.e is a 2002 federal tax lien for $5,977 (1.e). The debts alleged in SOR ¶ 1.f ($1,155) and 1.g ($1,765), are charged-off accounts. Applicant admits that they are not paid (1.f). The debt alleged in SOR ¶ 1.h ($4,712) is the result of a 2007 vehicle repossession (1.h). The debt alleged in SOR ¶ 1.i ($536). Applicant claims this is a duplicate account (1.i). The debt alleged in SOR ¶ 1.j ($1,449) is a collection account. This is unpaid (1.j). The debt alleged in SOR ¶ 1.l ($1,085) is an unpaid judgment. Applicant denies this judgment. She does not recognize it (1.l). The debt alleged in SOR ¶ 1.m ($283) is an unpaid judgment from 2005 (1.m). The debt alleged in SOR ¶ 1.n ($57) is a collection account. Applicant admits the debt but stressed that it was paid (1.n). The debt alleged in SOR ¶ 1.p ($75) is the result of a book club contract. Applicant claims she returned the books (1.p). The debt alleged in SOR ¶ 1.q ($1,645) is a collection account. Applicant admits this debt, and acknowledges that it is unpaid (1.q).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(e). The decision turned on the following: The applicant has unresolved delinquent debts totaling approximately $32,400, including a federal tax lien and multiple collection accounts; The applicant did not provide documentation to substantiate disputes regarding her debts; The applicant has not sought financial counseling or made sufficient efforts to resolve her debts.
Why the Applicant Was Denied
- The applicant has unresolved delinquent debts totaling approximately $32,400, including a federal tax lien and multiple collection accounts.
- The applicant did not provide documentation to substantiate disputes regarding her debts.
- The applicant has not sought financial counseling or made sufficient efforts to resolve her 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's financial difficulties began after leaving her permanent job to start a consulting business, which did not materialize.
- AG ¶ 20(c)rejectedEvidence of Counseling or Resolution EffortsThe applicant has not received formal financial counseling and her efforts to resolve debts are insufficient.
- AG ¶ 20(e)rejectedDispute of Legitimacy of Past Due DebtThe applicant disputed some debts but did not provide documentation to substantiate her claims.
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 issuedOct 6, 2009
- Answer filedNov 2, 2009
- Hearing heldFeb 25, 2010
- Decision dateMar 30, 2010
Cite For
- Insufficient Evidence of Financial Responsibility Under Guideline F
- Impact of Unresolved Debts on Security Clearance Eligibility
- Consideration of Personal Circumstances in Financial Difficulties