Summary
A 46-year-old aircraft handler was denied a security clearance under Guideline F (Financial Considerations) due to approximately $44,000 in delinquent debt accumulated since 2005. The Statement of Reasons detailed several financial obligations, including a $10,756 state income tax lien settled for $1,075 but remaining unpaid, and an $8,733 debt from an automobile repossession that became delinquent in 2010 and remains unresolved. Additionally, a $1,788 student loan debt, which the applicant attributed to his wife, lacked evidence of resolution.
While some debts were being addressed through a September 2012 repayment plan—including a $724 credit card debt, a $15,665 personal loan, and a $6,095 credit card debt—and others were paid in full (a $566 electric bill in March 2013 and a $592 credit card debt in May 2013), significant amounts remained outstanding.
The denial was based on the applicant's failure to demonstrate reliability in managing his financial obligations, particularly the unresolved tax lien and student loans. The applicant also did not provide evidence of financial counseling or a clear plan to resolve his remaining outstanding debts.
Why the Applicant Was Denied
- The applicant accumulated approximately $44,000 in delinquent debt since 2005, with significant amounts remaining unresolved.
- He failed to demonstrate reliability in addressing his financial delinquencies, including an unpaid state income tax lien and student loans.
- The applicant did not provide evidence of participation in financial counseling or a clear plan to resolve outstanding debts.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
- AG ¶ 20(b)appliedConditions Largely Beyond the Person's ControlThe applicant's financial problems were attributed to his wife's loss of employment and his own unemployment.
- AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue CreditorsThe applicant demonstrated some effort by entering a repayment plan for several debts.
- AG ¶ 20(c)rejectedReceiving Counseling or Evidence of ResolutionThe applicant did not provide evidence of financial counseling or clear indications that all problems were under control.
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 issuedOct 12, 2012
- Answer filedNov 12, 2012
- Hearing held—Decided on the written record without a hearing.
- Decision dateOct 2, 2013
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Impact of Financial Mismanagement on Security Clearance Eligibility
- Consideration of Mitigating Factors Under Guideline F