Summary
A 51-year-old test technician and retired Air Force master sergeant was denied a security clearance under Guideline F (Financial Considerations) due to approximately $40,000 in unresolved debts. The Statement of Reasons detailed a $7,844 judgment being repaid via wage garnishment, and approximately $40,000 in other unpaid debts for which the applicant had not contacted creditors, established payment plans, or challenged their legitimacy. While two other debts mentioned in the Statement of Reasons were paid in full, the remaining financial issues raised concerns.
Disqualifying conditions 19(a) and 19(c) were raised, indicating a history of not meeting financial obligations and an inability or unwillingness to satisfy debts. Mitigating conditions 20(b), 20(c), and 20(d) were applied, acknowledging that the financial problems were largely due to circumstances beyond the applicant's control (such as a separation from his wife), that the applicant had initiated good-faith efforts to resolve some debts, and that the applicant had demonstrated a clear intent to resolve the problems.
Despite a history of honorable service and some debt repayment, the denial was based on the applicant's failure to establish payment plans for the remaining $40,000 in debts and a lack of proactive measures to resolve them. The unresolved financial issues, even when exacerbated by personal circumstances, ultimately raised questions about the applicant's reliability and trustworthiness.
Why the Applicant Was Denied
- The applicant has unresolved debts totaling approximately $40,000 and has not contacted creditors to establish a payment plan.
- The applicant's financial issues were exacerbated by personal circumstances, including a separation from his wife, but he has not taken sufficient action to resolve his debts.
- The applicant's financial problems raise questions about his reliability and trustworthiness.
Conditions Referenced
- 19(a)appliedInability or Unwillingness to Satisfy Debts
- 19(c)appliedA History of Not Meeting Financial Obligations
- 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlWhile the applicant's financial issues began during his military service and were affected by personal circumstances, he has not taken action to resolve his debts.
- 20(c)rejectedThe Person Has Received or Is Receiving Counseling for the ProblemThe applicant contacted a credit counseling service but did not hire them due to unaffordable payment terms.
- 20(d)rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant has not contacted creditors to develop a payment plan for his debts.
Key Rule Quoted
“A person who seeks access to classified information enters into a fiduciary relationship with the Government predicated upon trust and confidence.”
Procedural Posture
- SOR issuedMay 11, 2010
- Answer filedMay 27, 2010
- Hearing heldAug 4, 2010Applicant waived the right to 15 days notice before the hearing.
- Decision dateNov 8, 2010
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations Under Guideline F
- Impact of Personal Circumstances on Financial Responsibility
- Failure to Establish a Payment Plan for Debts as a Disqualifying Factor