Summary
A 27-year-old married woman employed by a defense contractor was denied a security clearance under Guideline F (Financial Considerations) due to significant financial issues. She admitted to 28 delinquent debts totaling approximately $30,631. These debts included various medical bills, an automobile loan, past-due insurance, mobile phone service, cable television, and other loans and services.
The applicant had made no recent payments on most of these debts and had no current plans to resolve them. While she testified to a verbal agreement for reduced payments on an automobile loan, she had missed several of those payments. She also disputed two debts, one medical and one for electrical service, believing her half-sister used her name, but these disputes were denied. One past-due electrical service debt was resolved through payment.
The judge found that the applicant's financial problems had persisted for several years without resolution, raising concerns about her reliability and trustworthiness. Despite initiating bankruptcy proceedings, she did not provide sufficient evidence to mitigate the financial concerns, leading to the denial of her security clearance application.
Why the Applicant Was Denied
- The applicant admitted to 28 delinquent debts totaling approximately $30,631, with no recent payments or plans to resolve them.
- The applicant's financial problems have persisted for several years without resolution, indicating a lack of reliability and trustworthiness.
- The applicant did not provide sufficient evidence to mitigate the financial concerns, despite initiating bankruptcy proceedings.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was Infrequent, or Unlikely to RecurThe applicant's financial difficulties have been ongoing since at least 2006.
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlThe applicant did not provide evidence that her financial problems were beyond her control.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay CreditorsThe applicant's efforts to resolve debts were insufficient given the large amount of delinquent debt.
- AG ¶ 20(c)rejectedClear Indications That the Problem Is Being Resolved or Is Under ControlThe applicant's financial situation was not under control at the time of the decision.
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 issuedAug 24, 2012
- Answer filedAug 31, 2012
- Hearing heldNov 8, 2012
- Decision dateMar 5, 2013
Cite For
- Denial Based on Significant Unresolved Financial Obligations
- Impact of Ongoing Financial Issues on Security Clearance Eligibility
- Insufficient Evidence of Good-faith Efforts to Resolve Debts