Summary
A 49-year-old evaluation engineer with a master's degree was denied a security clearance under Guideline F (Financial Considerations) due to multiple delinquent debts totaling approximately $58,903, in addition to significant alimony arrears. The Statement of Reasons detailed ten specific financial allegations. These included a $1,760 collection account for past due rent, a $353 delinquent telephone debt, and two delinquent credit union accounts for $8,072 and $20,504.
Further allegations involved a $2,163 delinquent credit card debt, a $4,638 delinquent consumer debt, and a foreclosed first mortgage from January 2009. The applicant also had two delinquent collection accounts for automobile repossessions totaling $11,609 and $5,397, and another delinquent credit card debt of $4,407.
Despite some evidence of good character and work performance, the judge found that the applicant failed to mitigate the financial concerns. The denial was based on the applicant's multiple unresolved debts, lack of a clear repayment plan, and the finding that his unemployment stemmed from his own misconduct, rather than circumstances beyond his control. The applicant also did not seek financial counseling or demonstrate a good-faith effort to resolve his debts.
Why the Applicant Was Denied
- The applicant has multiple unresolved debts and has not established a plan to address them.
- The applicant's unemployment was due to his own misconduct, undermining claims of circumstances beyond his control.
- The applicant did not seek financial counseling or demonstrate a good-faith effort to resolve his debts.
Conditions Referenced
- F.19(a)raisedInability or Unwillingness to Satisfy Debts
- F.19(c)raisedA History of Not Meeting Financial Obligations
- F.20(a)rejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
- F.20(b)rejectedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
- F.20(c)rejectedThe Person Has Received or Is Receiving Counseling for the Problem
- F.20(d)rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
- F.20(e)rejectedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past Due Debt
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedDec 3, 2012
- Answer filedJan 7, 2013
- Hearing heldFeb 27, 2013
- Decision dateMar 27, 2013
Cite For
- Failure to Mitigate Financial Considerations Under Guideline F
- Impact of Personal Misconduct on Financial Stability
- Importance of Demonstrating Good-faith Efforts to Resolve Debts