Summary
A 46-year-old defense contractor was denied a security clearance under Guideline F (Financial Considerations) due to approximately $18,000 in unresolved delinquent debts. The applicant, employed since 2002, had accrued these debts over seven years, including $2,787 for medical services, $4,993 for consumer items, and a $10,169 charged-off second mortgage from a 2005 home foreclosure. These financial issues arose after an earlier Chapter 7 bankruptcy discharge in 1994.
The applicant failed to demonstrate any progress in addressing his financial obligations or provide a credible plan for resolution. He did not purchase health insurance, stating he could not afford employer-provided options, and made no payments toward his listed debts during a six-month period working in Iraq. While he expressed an intention to repay debts from anticipated increased overseas earnings if cleared, he provided no evidence of financial counseling or good-faith efforts to resolve his many overdue creditors.
Ultimately, the denial was based on the applicant's accumulation of significant delinquent debt without resolution, his failure to provide a plan for addressing these debts or preventing future financial irresponsibility, and the determination that his financial issues stemmed from voluntary choices rather than circumstances beyond his control. The ongoing nature of these debts, incurred after his 1994 bankruptcy, precluded a finding of unlikely recurrence.
Why the Applicant Was Denied
- The applicant accrued approximately $18,000 in delinquent debts over the past seven years without any resolution.
- He provided no evidence of a plan to address his debts or prevent future financial irresponsibility.
- The applicant's financial issues were a result of his voluntary choices, not circumstances beyond his control.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
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 14, 2011
- Answer filedOct 27, 2011
- Hearing heldN/AApplicant requested a decision based on the written record.
- Decision dateJun 18, 2012
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations Under Guideline F
- Lack of Evidence for Financial Responsibility and Mitigation
- Importance of Demonstrating a Credible Plan for Debt Resolution in Security Clearance Cases