Summary
A 31-year-old defense contractor employee was denied a security clearance due to significant financial indebtedness under Guideline F (Financial Considerations). The applicant's total debt amounted to approximately $174,746, and her financial history included a Chapter 7 bankruptcy filing in March 2003.
Specific allegations detailed in the Statement of Reasons included outstanding debts for two computers ($962), fitness equipment ($735), a Harley Davidson loan ($5,587), a truck purchased in 2005 ($7,900), a first mortgage ($157,000), and a Jeep purchased for a former fiancé ($2,562). Disqualifying conditions related to these debts were raised, while several mitigating conditions were also considered.
Ultimately, the clearance was denied because the applicant demonstrated an extensive history of financial indebtedness and failed to exhibit responsible behavior regarding her debts. She had not attempted to contact creditors or resolve delinquent accounts, leading the judge to conclude that her financial situation raised doubts about her reliability, trustworthiness, and good judgment.
Why the Applicant Was Denied
- Applicant has an extensive history of financial indebtedness and failed to demonstrate responsible behavior regarding her debts.
- She has not made any attempts to contact creditors or resolve her delinquent accounts.
- The applicant's financial situation raises doubts about her reliability, trustworthiness, and good judgment.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 19(e)raisedConsistent Spending Beyond One’s Means
- AG ¶ 20(a)rejectedBehavior Happened Long Ago or InfrequentlyApplicant's financial difficulties are ongoing and have not improved.
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlWhile some conditions were outside her control, she did not act responsibly to address her debts.
- AG ¶ 20(c)rejectedReceived Counseling for the ProblemApplicant did not receive any financial education or counseling.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay CreditorsApplicant has not initiated any efforts to repay her overdue creditors.
- AG ¶ 20(e)rejectedDispute Legitimacy of Past-due DebtApplicant failed to provide evidence of disputes with creditors.
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedJul 8, 2010
- Answer filedJul 21, 2010
- Hearing heldNov 9, 2010
- Decision dateJan 5, 2011
Cite For
- Denial of Security Clearance Due to Financial Irresponsibility Under Guideline F
- Failure to Mitigate Financial Considerations Despite Past Bankruptcy
- Lack of Good-faith Efforts to Resolve Debts as a Disqualifying Factor