Summary
A 31-year-old design engineer, employed by a defense contractor, was denied a security clearance due to significant financial concerns under Guideline F. The applicant had approximately $24,240 in delinquent debts, including a judgment of $5,556, later reduced to about $1,024, and federal income tax obligations of $912 for 2008 and $2,606 for 2011.
While the applicant cited identity theft and a recent bankruptcy filing as mitigating factors, the judge determined that these did not sufficiently resolve the security concerns. Disqualifying conditions included a history of not meeting financial obligations and an inability or unwillingness to satisfy debts.
The denial was based on the finding that the applicant did not take meaningful or responsible steps to address his delinquent debts until he required a security clearance. Furthermore, his financial problems were ongoing, and he failed to contact creditors when difficulties arose. The judge concluded that relying solely on bankruptcy did not demonstrate a good-faith effort to resolve the debts.
Why the Applicant Was Denied
- The applicant did not take meaningful or responsible steps to resolve delinquent debts until he needed a security clearance.
- The applicant's financial problems were ongoing and he failed to contact creditors when he began to have difficulty meeting obligations.
- The applicant's reliance on bankruptcy alone did not demonstrate a good-faith effort to resolve debts.
Conditions Referenced
- AG ¶ 19(a)appliedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)appliedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)appliedBehavior Happened so Long Ago, Was Infrequent, or Occurred Under Circumstances Unlikely to Recur
- AG ¶ 20(b)rejectedConditions That Resulted in Financial Problems Were Largely Beyond the Person's ControlWhile some conditions were beyond the applicant's control, he did not act responsibly.
- AG ¶ 20(c)appliedReceived or Is Receiving Counseling for the Problem
- AG ¶ 20(d)rejectedInitiated a Good-faith Effort to Repay Overdue CreditorsThe applicant relied solely on bankruptcy to resolve 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 29, 2013
- Answer filedFeb 6, 2013Undated document
- Hearing heldJun 5, 2013Hearing convened as scheduled.
- Decision dateJun 19, 2013
Cite For
- Denial Based on Ongoing Financial Irresponsibility Under Guideline F
- Importance of Proactive Debt Management in Security Clearance Cases
- Impact of Bankruptcy on Security Clearance Eligibility