Summary
The applicant, a 56-year-old government contractor, faced security clearance denial under Guideline F due to seven delinquent debts totaling $22,431 and a dismissed Chapter 13 bankruptcy. Despite attributing his financial issues to unemployment, he failed to demonstrate responsible actions to resolve his debts or provide evidence of financial rehabilitation, leading to unresolved security concerns.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant is alleged to be indebted on a federal tax lien entered against him in the approximate amount of $15,371, as listed in SOR ¶ 1.b (1.a). Applicant is alleged to be indebted on a judgment entered against him in 2007 in the approximate amount of $1,119, as listed in SOR ¶ 1.c (1.b). Applicant is alleged to be indebted on a medical debt in the approximate amount of $155, as listed in SOR ¶ 1.d (1.c). Applicant is alleged to be indebted on a medical debt in the approximate amount of $491, as listed in SOR ¶ 1.e (1.d). Applicant is alleged to be indebted on a student loan in the approximate amount of $4,671, as listed in SOR ¶ 1.f (1.e). Applicant is alleged to be indebted on a charged-off credit card in the approximate amount of $418, as listed in SOR ¶ 1.g (1.f). Applicant is alleged to be indebted on a collection account in the approximate amount of $206, as listed in SOR ¶ 1.h (1.g).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The decision turned on the following: Applicant accumulated seven delinquent debts totaling $22,431; Applicant's Chapter 13 bankruptcy was dismissed in 2008 due to failure to file a feasible plan and make required payments; Applicant has not resolved any of his delinquent debts since his employment began in January 2014.
Why the Applicant Was Denied
- Applicant accumulated seven delinquent debts totaling $22,431.
- Applicant's Chapter 13 bankruptcy was dismissed in 2008 due to failure to file a feasible plan and make required payments.
- Applicant has not resolved any of his delinquent debts since his employment began in January 2014.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
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 10, 2014
- Answer filedNov 5, 2014
- Hearing held—Decided on the written record without a hearing.
- Decision dateJun 2, 2015
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Impact of Financial Instability on Security Clearance Eligibility
- Failure to Provide Evidence of Debt Resolution or Financial Rehabilitation