Summary
A 44-year-old government contractor was denied a security clearance under Guideline F, Financial Considerations, due to significant financial delinquencies totaling approximately $52,882. The Statement of Reasons detailed a history of financial issues, including a Chapter 7 bankruptcy declared in 2000 with debts discharged around June 2000.
The applicant also had numerous outstanding medical debts, ranging from approximately $25 to $1,375, and various consumer debts, including amounts of approximately $28,026 and $17,177. Additionally, the applicant owed approximately $274 in child support.
Despite presenting some evidence of payments and efforts to settle debts, the judge determined that the applicant failed to demonstrate sufficient mitigation of the government's concerns regarding his financial responsibility. The denial was based on the applicant's unresolved financial issues and insufficient evidence of consistent efforts to address his debts.
Why the Applicant Was Denied
- The applicant has a history of financial delinquency, including a bankruptcy and multiple unpaid debts.
- The applicant's financial issues were not resolved, and he failed to provide sufficient evidence of a consistent effort to address his debts.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedUnresolved Financial Delinquency Occurred so Long Ago or Infrequently That It Is Unlikely to RecurThe applicant's financial issues are ongoing and have not been resolved.
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlWhile the applicant cited personal hardships, the judge found insufficient evidence of responsible actions taken to mitigate the debts.
- AG ¶ 20(c)rejectedEvidence of Counseling for the Problem or Indications That the Problem Is Being ResolvedThe applicant did not demonstrate effective financial management or counseling.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue Creditors or Resolve DebtsThe applicant's efforts were deemed insufficient to mitigate the financial concerns.
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedMar 16, 2011
- Answer filedMar 29, 2011Applicant requested adjudication on the written record.
- Hearing held—No hearing; case adjudicated on the written record.
- Decision dateJun 24, 2011
Cite For
- Denial of Security Clearance Due to Unresolved Financial Delinquencies Under Guideline F
- Insufficient Evidence of Good-faith Efforts to Resolve Debts
- Impact of Financial Irresponsibility on Security Clearance Eligibility