Summary
A 42-year-old defense contractor was denied a security clearance under Guideline F, Financial Considerations, due to significant delinquent debts totaling approximately $34,416 and a history of bankruptcy. The Statement of Reasons specifically cited a $19,802 charged-off home equity loan and a $4,295 credit union line of credit with a $510 past-due balance. These issues raised disqualifying conditions F.19(a) and F.19(c).
While the applicant attributed his financial difficulties to unemployment and personal circumstances, the judge found insufficient evidence of responsible action to mitigate these concerns. Although mitigating conditions F.20(a), F.20(b), F.20(c), and F.20(d) were considered, they were not sufficient to overcome the security risks.
The denial was based on the applicant's substantial delinquent debts, the history of bankruptcy, and the fact that no payments had been made on these debts since August 2010. Despite being employed for over two years, the applicant had not taken significant steps to address the outstanding financial obligations.
Why the Applicant Was Denied
- Applicant has significant delinquent debts totaling approximately $34,416.
- Applicant has a history of bankruptcy and has not made payments on his debts since August 2010.
- Despite being employed for over two years, Applicant has not taken significant steps to address his delinquent debts.
Conditions Referenced
- F.19(a)raisedInability or Unwillingness to Satisfy Debts
- F.19(c)raisedA History of Not Meeting Financial Obligations
- F.20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlApplicant's unemployment and marital separation were outside his control.
- F.20(c)appliedThe Person Has Received or Is Receiving Counseling for the ProblemApplicant received some financial counseling.
- F.20(a)rejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to RecurApplicant's financial issues are recent and ongoing.
- F.20(d)rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsApplicant has not made significant efforts to address his delinquent debts.
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedAug 2, 2010
- Answer filedAug 28, 2010
- Hearing heldApr 20, 2011Applicant requested a decision on the written record in lieu of a hearing.
- Decision dateMay 12, 2011
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Impact of Financial Instability on Security Clearance Eligibility
- Consideration of Personal Circumstances in Financial Mitigation Under Guideline F