Summary
A 59-year-old federal contractor employee was denied a security clearance under Guideline F (Financial Considerations) due to a history of financial difficulties. This included a Chapter 7 bankruptcy and five delinquent debts totaling over $20,000.
Specific allegations included a $297 utility account, now with a $47 balance, and a $957 credit card account, now with a $557 balance, both placed for collection. Other unresolved debts were a $12,174 charged-off credit card, a $678 utility account with an unknown status, and a $6,492 deficiency balance from a 2005 vehicle repossession. The applicant had contacted some creditors but was unable to meet settlement terms, intending to re-engage when financially able.
Despite personal hardships, the applicant did not provide sufficient evidence to mitigate the financial concerns. The decision noted that little had been done to improve his financial situation since starting employment in 2009, leading to the denial of his security clearance.
Why the Applicant Was Denied
- The applicant has a history of financial problems, including a Chapter 7 bankruptcy and five delinquent accounts totaling over $20,000.
- The applicant failed to present sufficient evidence to mitigate the security concerns stemming from his financial history.
- The applicant has done little to improve his financial situation since beginning employment in 2009.
Conditions Referenced
- AG ¶ 19appliedFinancial ConsiderationsThe applicant's financial history indicates an inability or unwillingness to satisfy debts.
- AG ¶ 18appliedFinancial ConsiderationsThe applicant's excessive indebtedness raises security concerns.
- AG ¶ 20(b)rejectedFinancial ConsiderationsAlthough the applicant experienced circumstances beyond his control, he did not act responsibly to resolve his financial issues.
- AG ¶ 20(d)rejectedFinancial ConsiderationsThe applicant initiated some payments but did not demonstrate a consistent effort to repay debts.
Key Rule Quoted
“Failure or inability to live within one’s means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual’s reliability, trustworthiness, and ability to protect classified information.”
Procedural Posture
- SOR issuedOct 6, 2010
- Answer filedFeb 18, 2011Applicant initially did not request a hearing.
- Hearing heldAug 3, 2011
- Decision dateNov 30, 2011
Cite For
- Denial of Security Clearance Due to Unresolved Financial Issues Under Guideline F
- Impact of Financial Irresponsibility on Security Clearance Eligibility
- Insufficient Evidence of Rehabilitation in Financial Matters