Summary
A 33-year-old defense contractor employee was denied a security clearance under Guideline F, Financial Considerations, due to unresolved delinquent debts totaling $18,572. This denial occurred despite a Chapter 7 bankruptcy discharge in 2000. The Statement of Reasons (SOR) specifically cited seven collection debts from 2003 to 2007, including medical and telecommunications debts, ranging from $50 to $2,178.
The judge identified disqualifying conditions under Adjudicative Guidelines (AG) ¶ 19(a) and AG ¶ 19(c). While mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d), and AG ¶ 20(e) were considered, they were not sufficient to overcome the security concerns.
The denial was based on the applicant's 22 unresolved delinquent debts, the lack of proof of payments on the SOR debts, and a negative net monthly income. The judge concluded there was insufficient evidence of financial responsibility or efforts to mitigate the financial issues, raising concerns about the applicant's reliability and trustworthiness.
Why the Applicant Was Denied
- The applicant had 22 unresolved delinquent debts totaling $18,572.
- He did not provide proof of any payments on his SOR debts.
- His monthly expenses exceeded his income, resulting in a negative net remainder.
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 so Long Ago, Was Infrequent, or Unlikely to RecurThe applicant's financial issues were ongoing and not resolved.
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlWhile the applicant cited personal circumstances, he did not demonstrate responsible actions.
- AG ¶ 20(c)rejectedReceived or Receiving CounselingThe applicant had not received financial counseling.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay CreditorsThe applicant did not make any payments on his SOR debts.
- AG ¶ 20(e)rejectedReasonable Basis to Dispute Legitimacy of DebtThe applicant did not provide documented proof to dispute the 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 issuedJan 13, 2010
- Answer filedJan 30, 2010
- Hearing heldApr 7, 2010
- Decision dateJul 7, 2010
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Impact of Financial Irresponsibility on Security Clearance Eligibility
- Criteria for Evaluating Financial Considerations Under Guideline F