Summary
A 34-year-old assistant security officer for a defense contractor was denied a security clearance under Guideline F (Financial Considerations) due to a history of significant financial issues. The Statement of Reasons detailed a Chapter 7 bankruptcy filed in September 2004, with debts discharged in January 2005.
Beyond the bankruptcy, the applicant had numerous outstanding debts, including medical debts of $80, $150, $299, $187, $82, $82, $122, and $122. Credit card accounts were charged off for $525, $420, and $4,146. Other debts included a repossession for $8,976, an insurance account in collection for $81, and a telephone account in collection for $299. These issues raised Disqualifying Conditions AG ¶ 19(a) and AG ¶ 19(c).
While Mitigating Conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(d), and AG ¶ 20(e) were considered, the denial was based on the applicant's history of approximately $15,000 in delinquent debts and a failure to demonstrate a good-faith effort to resolve these obligations or contact creditors. This financial irresponsibility led to concerns about his reliability and trustworthiness, resulting in the denial of his security clearance.
Why the Applicant Was Denied
- The applicant has a history of significant delinquent debts totaling approximately $15,000, including medical debts and a repossession debt.
- The applicant failed to demonstrate a good-faith effort to resolve his financial obligations or to contact creditors regarding his debts.
- The applicant's financial irresponsibility raises concerns about his reliability and trustworthiness in handling classified information.
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 Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur and Does Not Cast Doubt on the Individual’s Current Reliability, Trustworthiness, or Good JudgmentThe applicant's financial issues are ongoing and have not been resolved.
- AG ¶ 20(b)rejectedThe Conditions That Resulted in the Financial Problems Were Largely Beyond the Person’s ControlWhile some circumstances were beyond the applicant's control, he did not act responsibly to resolve his debts.
- AG ¶ 20(d)rejectedThe Individual Has Initiated a Good-faith Effort to Repay the Overdue Creditors or Otherwise Resolve DebtsThe applicant has not shown any meaningful efforts to repay or resolve his debts.
- AG ¶ 20(e)rejectedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due DebtThe applicant did not provide evidence of actions taken to resolve disputed 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 issuedNov 10, 2011
- Answer filedNov 22, 2011
- Hearing heldMar 20, 2012
- Decision dateMay 23, 2012
Cite For
- Financial Irresponsibility as a Disqualifying Factor Under Guideline F
- The Necessity of Demonstrating a Good-faith Effort to Resolve Debts for Mitigating Conditions
- The Impact of Financial Issues on Trustworthiness and Reliability in Security Clearance Determinations.