Summary
A 56-year-old male Department of Defense contractor was denied a security clearance under Guideline F (Financial Considerations) due to a history of significant financial irresponsibility. The applicant admitted to numerous delinquent debts totaling approximately $96,642, which included various credit card accounts, a recreational vehicle loan, a motorcycle loan, a time share account, and multiple collection accounts owed to a municipality, medical providers, and for parking tickets.
The Statement of Reasons detailed 21 specific allegations of delinquent or charged-off accounts, ranging from $93 to $33,240. These included a $33,240 delinquent recreational vehicle loan from November 2012 and a $315 collection account from February 2013, among others. The applicant's financial history also included a dismissed Chapter 13 bankruptcy.
The denial was based on the applicant's inability or unwillingness to satisfy his debts, the dismissal of his bankruptcy without evidence of debt resolution, and his insufficient, last-minute attempts to dispute debts. The judge concluded that these issues raised significant concerns about his reliability and trustworthiness.
Why the Applicant Was Denied
- The applicant has numerous delinquent debts totaling approximately $96,642, indicating an inability or unwillingness to satisfy debts.
- The applicant's Chapter 13 bankruptcy was dismissed, and he provided no evidence of resolving his delinquent debts.
- The applicant's attempts to dispute debts were deemed insufficient and occurred at the last minute, failing to demonstrate a good-faith effort to resolve financial issues.
Conditions Referenced
- AG ¶ 19(a)appliedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)appliedHistory of Not Meeting Financial Obligations
- AG ¶ 20(b)appliedConditions That Resulted in Financial Problems Were Largely Beyond the Person's ControlThe applicant was unemployed for a period and faced a foreclosure.
- AG ¶ 20(c)rejectedReceived or Receiving Counseling for the ProblemNo evidence of financial counseling was provided.
- AG ¶ 20(d)rejectedInitiated a Good-faith Effort to Repay Overdue CreditorsThe applicant did not provide sufficient proof of resolving any debts.
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedOct 2, 2014
- Answer filedOct 27, 2014Requested decision on written record.
- Hearing held—
- Decision dateApr 15, 2015
Cite For
- Financial Irresponsibility as a Basis for Denial Under Guideline F
- Impact of Dismissed Bankruptcy on Security Clearance Eligibility
- Insufficient Evidence of Debt Resolution Efforts Leading to Denial of Clearance