Summary
A 36-year-old site safety manager for a federal contractor was denied a security clearance under Guideline F (Financial Considerations) due to approximately $38,697 in unresolved delinquent debt owed to 30 creditors. The applicant admitted to the debt and demonstrated a history of inability to pay.
While the applicant attributed his financial issues to periods of unemployment, divorce, and a medical condition, he failed to provide evidence of financial rehabilitation or efforts to negotiate with creditors. Although he is current on child support and no longer uses consumer credit, and attempted to enroll in a debt consolidation program but could not afford the payments, these factors were not sufficient to mitigate the concerns.
The decision noted that delinquent accounts showing zero balances on his credit reports were not evidence of resolution, as creditors had charged off the balances. Ultimately, the applicant did not provide evidence to warrant the application of any mitigating conditions, leading to the denial of his security clearance.
Why the Applicant Was Denied
- Applicant admitted to owing approximately $38,697 in unresolved delinquent debt.
- He demonstrated an inability to pay his debts and a history of not doing so.
- Applicant did not provide evidence to support the application of any mitigating conditions.
Conditions Referenced
- AG ¶ 19(a)raisedFinancial ConsiderationsApplicant has unresolved delinquent debt.
- AG ¶ 19(c)raisedFinancial ConsiderationsApplicant has a history of not paying debts.
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedJan 9, 2013
- Answer filed—Applicant requested a decision without a hearing.
- Hearing held—Decision made without a hearing.
- Decision dateAug 16, 2013
Cite For
- Unresolved Delinquent Debt as a Security Concern Under Guideline F
- Failure to Provide Evidence of Financial Rehabilitation
- Importance of Addressing Financial Obligations for Security Clearance Eligibility