Summary
A 30-year-old defense contractor and former U.S. Army member was denied a security clearance under Guideline F, Financial Considerations. The denial stemmed from 29 delinquent debts, totaling approximately $52,000, which became delinquent between August 2004 and December 2009. The applicant had not communicated with most creditors and lacked knowledge of several debts on his credit reports. He also failed to provide evidence of payment, attempted payment, or established repayment plans for any of these debts, including smaller amounts.
While the applicant did file all outstanding state and federal tax returns in early 2009, this action was not sufficient to mitigate the broader financial concerns. Disqualifying conditions included a history of not meeting financial obligations and an inability to satisfy debts. Although mitigating conditions such as the debts not being recent and the applicant having initiated efforts to resolve some issues were considered, they were ultimately not applied to the overall decision.
The denial was based on a consistent pattern of financial irresponsibility dating back to 2004, a failure to demonstrate efforts to resolve outstanding debts or communicate with creditors, and the applicant's intention to file for Chapter 7 bankruptcy, which did not show financial rehabilitation or control. Consequently, the security clearance was denied.
Why the Applicant Was Denied
- Applicant demonstrated a consistent pattern of financial irresponsibility dating back to 2004.
- Applicant failed to provide evidence of efforts to resolve outstanding debts or communicate with creditors.
- Applicant's intention to file for Chapter 7 bankruptcy did not demonstrate financial rehabilitation or control over his financial situation.
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 RecurOngoing financial problems are not isolated and no evidence supports that the delinquent indebtedness is unlikely to recur.
- AG ¶ 20(b)appliedConditions Largely Beyond the Person's ControlApplicant attributed financial problems to circumstances beyond his control but did not provide evidence of responsible actions.
- AG ¶ 20(c)rejectedReceived Counseling for the ProblemCounseling sessions were insufficient to demonstrate that financial issues are under control.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay CreditorsNo evidence of payments or attempts to resolve debts was provided.
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 28, 2009
- Answer filedNov 18, 2009Applicant elected to decide on the written record.
- Hearing held—No hearing; case decided on written record.
- Decision dateMay 17, 2010
Cite For
- Financial Irresponsibility as a Disqualifying Factor Under Guideline F
- Insufficient Evidence of Mitigation Efforts in Financial Cases
- Importance of Demonstrating Good Judgment and Reliability in Financial Matters for Security Clearance Eligibility.