Summary
A 47-year-old married father of five was denied a security clearance under Guideline F (Financial Considerations) due to significant delinquent debts totaling approximately $141,911. The Statement of Reasons detailed multiple outstanding obligations, including several in charged-off status for amounts such as $10,509, $9,358, $65,600, $13,634, and $752. Additionally, three debts were in collection status for $11,463, $15,287, and $15,309.
The applicant admitted to owing the approximately $141,911 in delinquent debts, with five specifically noted as charged-off. Despite steady employment since 1999, the applicant failed to demonstrate good-faith efforts to resolve these financial issues. Disqualifying conditions under Adjudicative Guidelines (AG) ¶ 19(a) and AG ¶ 19(c) were raised.
Although mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d), and AG ¶ 20(e) were considered, they were not sufficient to overcome the concerns. The applicant did not provide a personal financial statement or evidence of income, expenses, or savings to support claims of financial stability, and a Chapter 7 bankruptcy declaration did not adequately mitigate the financial obligations. Consequently, the security clearance was denied.
Why the Applicant Was Denied
- The applicant admitted to owing approximately $141,911 in delinquent debts, five of which were in charged-off status.
- The applicant did not provide a personal financial statement or evidence of income, expenses, or savings to support his claims of financial stability.
- The applicant's declaration of Chapter 7 bankruptcy did not sufficiently mitigate concerns regarding his financial obligations.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedThe Financial Problem Is Unlikely to RecurThe applicant failed to demonstrate that his financial issues were infrequent or unlikely to recur.
- AG ¶ 20(b)rejectedConditions Beyond the Person's ControlThe applicant did not provide evidence that his financial difficulties were due to circumstances beyond his control.
- AG ¶ 20(c)rejectedReceived Financial CounselingThe applicant did not receive financial counseling.
- AG ¶ 20(d)rejectedGood Faith Effort to Repay DebtsThe applicant did not demonstrate good-faith efforts to satisfy his debts.
- AG ¶ 20(e)rejectedDispute Legitimacy of DebtsThe applicant did not provide evidence to dispute the legitimacy of the debts.
Key Rule Quoted
“A person who seeks access to classified information enters into a fiduciary relationship with the Government predicated upon trust and confidence.”
Procedural Posture
- SOR issuedApr 8, 2011
- Answer filedApr 30, 2011Applicant declined a hearing.
- Hearing held—Determined on the written record.
- Decision dateOct 31, 2011
Cite For
- Failure to Demonstrate Good-faith Efforts to Resolve Financial Delinquencies
- Significant Financial Obligations as a Disqualifying Factor Under Guideline F
- Impact of Bankruptcy on Security Clearance Eligibility