Summary
A 55-year-old administrative assistant for a defense contractor was denied a security clearance under Guideline F (Financial Considerations). The denial stemmed from multiple delinquent debts totaling approximately $20,815 and a Chapter 7 bankruptcy discharge in 1993.
The Statement of Reasons detailed eight specific allegations, including a medical bill for $657, a cable bill for $106, two collection accounts for rent and another for $4,667, a collection account for $5,920, a charged-off student loan for $2,084, a credit card debt for $1,924, and another medical bill for $3,496. Disqualifying conditions under AG ¶ 19(a) and AG ¶ 19(b) were raised, while mitigating conditions under AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d), and AG ¶ 20(e) were considered.
Ultimately, the clearance was denied because the applicant admitted to the delinquent debts and a history of financial irresponsibility. She did not demonstrate a good-faith effort to resolve her debts or provide evidence of disputing their legitimacy. The judge found that her financial issues were not mitigated by circumstances beyond her control, as many debts predated her divorce and unemployment.
Why the Applicant Was Denied
- The applicant admitted to multiple delinquent debts and a history of financial irresponsibility.
- She failed to demonstrate a good-faith effort to resolve her debts or provide evidence of disputing the legitimacy of the debts.
- The applicant's financial issues were not mitigated by circumstances beyond her control, as many debts predated her divorce and unemployment.
Conditions Referenced
- AG ¶ 19(a)appliedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(b)appliedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was Infrequent, or Unlikely to RecurThe applicant's delinquent debts are numerous and unresolved.
- AG ¶ 20(b)rejectedConditions That Resulted in Financial Problems Were Largely Beyond the Person's ControlThe applicant did not provide sufficient information about her bankruptcy circumstances and failed to act responsibly regarding her debts.
- AG ¶ 20(c)rejectedReceived Counseling for the Problem And/or Indications That the Problem Is Being ResolvedThe applicant did not show clear indications that her financial problems are being resolved.
- AG ¶ 20(d)rejectedInitiated a Good-faith Effort to Repay Overdue CreditorsThe applicant has not taken significant steps to resolve her debts.
- AG ¶ 20(e)rejectedReasonable Basis to Dispute the Legitimacy of the Past-due DebtThe applicant provided no evidence to substantiate her dispute of the debts.
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the AG.”
Procedural Posture
- SOR issuedJan 3, 2013
- Answer filedJan 24, 2013
- Hearing heldApr 15, 2013Applicant waived the 15-day notice requirement.
- Decision dateMay 9, 2013
Cite For
- Denial Based on Financial Irresponsibility Under Guideline F
- Failure to Demonstrate Good-faith Efforts to Resolve Debts
- Impact of Financial Issues on Security Clearance Eligibility