Summary
A 44-year-old defense contractor and Air Force veteran was denied a security clearance under Guideline F (Financial Considerations) due to 18 delinquent debts and a prior bankruptcy. The Statement of Reasons detailed a 1996 bankruptcy discharge and numerous current delinquent debts, including three mortgage debts, two second mortgage debts (current through July 2010), and thirteen credit card debts. These credit card debts ranged from $741 to $75,377, with one debt of $13,000 owed to a collection agency.
The applicant's financial issues raised disqualifying conditions F.19(a) and F.19(c). While mitigating conditions F.20(a), F.20(b), F.20(c), F.20(d), and F.20(e) were considered, they were insufficient to overcome the concerns.
The denial was based on the applicant's numerous delinquent debts, totaling approximately $250,000, for which no payment plans were established. The judge found that the financial difficulties were recent and unresolved, despite some attempts at loan modifications. The combination of the prior bankruptcy and the ongoing financial issues led to significant concerns regarding the applicant's reliability and trustworthiness.
Why the Applicant Was Denied
- The applicant has numerous delinquent debts totaling approximately $250,000, with no payment plans in place.
- The applicant's financial difficulties were ongoing and not fully resolved despite some efforts to seek loan modifications.
- The applicant's prior bankruptcy and current financial situation raised significant concerns about his reliability and trustworthiness.
Conditions Referenced
- F.19(a)raisedInability or Unwillingness to Satisfy Debts
- F.19(c)raisedA History of Not Meeting Financial Obligations
- F.20(a)appliedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
- F.20(b)appliedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
- F.20(c)appliedThe Person Has Received or Is Receiving Counseling for the Problem
- F.20(d)rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant's limited payments on two second mortgages were insufficient to demonstrate a good-faith effort to resolve all debts.
- F.20(e)rejectedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due DebtThe applicant's disputes regarding certain debts were not supported by corroborating evidence.
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 issuedApr 23, 2010
- Answer filedMay 27, 2010
- Hearing heldOct 15, 2010
- Decision date—
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Impact of Prior Bankruptcy on Current Financial Reliability
- Consideration of Mitigating Conditions Under Guideline F