Summary
A 42-year-old painter for a defense contractor was denied a security clearance under Guideline F, Financial Considerations, due to a history of significant financial delinquencies. The Statement of Reasons (SOR) detailed concerns including two bankruptcies and 19 delinquent debts totaling over $12,000. Specific allegations included a $466 debt and a $1,198 debt.
Disqualifying conditions under Guideline F, specifically AG ¶ 19(a) and AG ¶ 19(c), were raised due to the applicant's extensive financial issues. While mitigating conditions AG ¶ 20(b), AG ¶ 20(c), and AG ¶ 20(d) were considered, they were ultimately insufficient to overcome the concerns.
The denial was based on the applicant's long history of financial problems, including the two bankruptcies and 19 delinquent debts. Crucially, she failed to provide sufficient evidence of resolving 17 of these 19 alleged delinquent debts and did not demonstrate a solid plan for managing her financial obligations.
Why the Applicant Was Denied
- The applicant has a long history of financial problems, including two bankruptcies and 19 delinquent debts totaling over $12,000.
- She failed to provide sufficient evidence that she is resolving 17 of the 19 alleged delinquent debts.
- The applicant did not demonstrate a solid plan for managing her financial obligations.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue CreditorsThe applicant provided documentation that she made a good-faith effort to resolve two of the 19 SOR-listed debts.
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlWhile the applicant attributed some financial issues to inconsistent work, she did not provide sufficient proof of responsible actions taken to resolve debts.
- AG ¶ 20(c)rejectedReceived Counseling for the ProblemThe applicant did not present evidence of participating in financial or credit counseling.
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 29, 2014
- Answer filedNov 21, 2014
- Hearing held—Decided on the written record without a hearing.
- Decision dateJun 30, 2015
Cite For
- Denial of Security Clearance Due to Unresolved Financial Delinquencies
- Impact of Financial Irresponsibility on Security Clearance Eligibility
- Insufficient Evidence of Debt Resolution Efforts Leading to Security Concerns