Summary
A 55-year-old male Department of Defense contractor applicant was denied a security clearance under Guideline F (Financial Considerations). The applicant admitted to eight delinquent debts totaling approximately $19,265 and a prior Chapter 7 bankruptcy filing. Specific allegations included a $5,949 collection account, a $4,503 delinquent credit card account, and several other delinquent accounts ranging from $950 to $2,589, all placed for collection.
Disqualifying conditions under Guideline F were raised, while mitigating conditions were also considered. The applicant cited job loss and personal circumstances as reasons for his financial difficulties.
However, the judge found that the applicant had numerous delinquent debts he was unable or unwilling to pay. Crucially, he did not provide verification of a debt repayment plan or proof of payments made. Ultimately, the applicant failed to demonstrate a good-faith effort to resolve his delinquent accounts, leading to the denial of his security clearance.
Why the Applicant Was Denied
- The applicant had numerous delinquent debts totaling approximately $19,265 that he was unable or unwilling to pay.
- The applicant did not provide verification of a debt repayment plan or proof of payments made towards resolving his debts.
- The applicant failed to demonstrate a good-faith effort to resolve his delinquent accounts.
Conditions Referenced
- AG ¶ 19(a)appliedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)appliedHistory of Not Meeting Financial Obligations
- AG ¶ 20(b)appliedConditions Largely Beyond the Person's ControlThe applicant experienced financial difficulties due to job loss and personal circumstances.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsThe applicant did not provide documentation to verify steps taken to resolve debts.
- AG ¶ 20(c)rejectedReceived Counseling for the ProblemThere is no evidence the applicant received financial counseling.
- AG ¶ 20(a)rejectedBehavior Occurred Long Ago or InfrequentlyThe applicant's financial issues are ongoing and have not been resolved.
- AG ¶ 20(e)rejectedDispute Legitimacy of Past-due DebtWhile the applicant is disputing debts, it is too soon to conclude that his efforts will succeed.
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 issuedJun 25, 2014
- Answer filedJul 25, 2014Applicant requested decision on written record.
- Hearing heldApr 2, 2015Case assigned to judge.
- Decision dateApr 16, 2015
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Insufficient Evidence of Good-faith Efforts to Resolve Debts
- Impact of Financial Issues on Reliability and Trustworthiness Under Guideline F