Summary
The applicant, a 30-year-old electronic technician and former U.S. Marine, sought a security clearance but was denied due to unresolved financial issues, including $17,000 in past-due accounts and a history of bankruptcy. The judge found that the applicant failed to demonstrate sufficient efforts to mitigate the financial concerns, leading to a denial of clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: $2,012 credit card account placed for collection (1.b). $157 delinquent medical account (1.c). $264 delinquent medical account (1.d). $411 medical account placed for collection (1.e). $604 medical account placed for collection (1.f). $294 medical account placed for collection (1.g). $20 delinquent medical account (1.h). $185 account placed for collection by utilities company (1.i). $44 returned check (1.j). $1,276 line of credit included in bankruptcy discharge (1.k). $934 account charged off (1.l). $1,025 returned check that was the downpayment on a vehicle (1.m). $2,591 account placed for collection on a relocation loan (1.n). $809 account placed for collection (1.o). $994 account placed for collection (1.p). $166 state student loan was 120 days or more past due (1.q). $134 state student loan was 120 days or more past due (1.r). $1,407 account placed for collection (1.s). $40 medical account placed for collection (1.t). $292 account placed for collection (1.u). $103 account placed for collection by water company (1.v). $3,358 charged-off vehicle account (1.w).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(d). The decision turned on the following: The applicant has a history of financial problems, including a bankruptcy discharge in 2003 and $17,000 in current past-due accounts; The applicant failed to provide sufficient evidence of a good-faith effort to repay debts or resolve financial obligations; The applicant's financial difficulties were not caused by circumstances beyond his control.
Why the Applicant Was Denied
- The applicant has a history of financial problems, including a bankruptcy discharge in 2003 and $17,000 in current past-due accounts.
- The applicant failed to provide sufficient evidence of a good-faith effort to repay debts or resolve financial obligations.
- The applicant's financial difficulties were not caused by circumstances beyond his control.
Conditions Referenced
- AG ¶ 19(a)appliedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)appliedA History of Not Meeting Financial Obligations
- AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue Creditors
Key Rule Quoted
“An applicant is not required to be debt free, but is required to manage his finances so as to meet his financial obligations.”
Procedural Posture
- SOR issuedApr 30, 2010
- Answer filedJun 28, 2010Applicant elected to proceed without a hearing.
- Hearing held—No hearing was conducted.
- Decision dateJan 31, 2011
Cite For
- Financial Irresponsibility as a Disqualifying Factor Under Guideline F
- Insufficient Evidence of Debt Repayment Efforts
- Impact of Bankruptcy on Security Clearance Eligibility