Summary
A Department of Defense contractor employee with a high school education was denied a security clearance under Guideline F, Financial Considerations. The denial stemmed from a history of unresolved financial issues, including multiple delinquent credit card accounts and a prior bankruptcy.
The Statement of Reasons detailed several specific allegations: a $6,764 charged-off credit card account, a $5,847 charged-off credit card account, a $4,555 charged-off credit card account, and a $240 account placed for collection. These issues highlighted the applicant's pattern of not meeting financial obligations, with delinquent accounts totaling approximately $17,406.
Despite acknowledging some debts and entering a repayment plan for one, the applicant failed to provide sufficient evidence of financial stability or mitigating circumstances. The applicant had also filed for Chapter 7 bankruptcy in 2007 and continued to incur delinquent debts afterward. Consequently, the Adjudicator concluded that granting a security clearance was not consistent with national interest.
Why the Applicant Was Denied
- Applicant has a history of not meeting financial obligations, including multiple delinquent accounts totaling approximately $17,406.
- Applicant filed for Chapter 7 bankruptcy in 2007 and continued to incur delinquent debts afterward.
- Applicant did not provide sufficient evidence of financial stability or mitigating circumstances to address the security concerns.
Conditions Referenced
- AG ¶ 19(a)appliedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)appliedHistory of Not Meeting Financial Obligations
- AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue CreditorsApplicant entered into a repayment agreement for one of the debts.
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlRecent delinquent accounts were not due to circumstances beyond her control.
- AG ¶ 20(c)rejectedReceived Counseling for the ProblemNo evidence of financial counseling was provided.
- AG ¶ 20(a)rejectedBehavior Occurred Long Ago or InfrequentlyRecent delinquent accounts indicate ongoing financial issues.
- AG ¶ 20(e)rejectedReasonable Basis to Dispute Legitimacy of DebtInsufficient information provided regarding the disputed debt.
Key Rule Quoted
“An applicant is not required to be debt free, but is required to manage her finances in such a way as to meet her financial obligations.”
Procedural Posture
- SOR issuedOct 21, 2014
- Answer filedNov 10, 2014Applicant requested a decision on the record.
- Hearing heldMar 3, 2016Case assigned to the judge.
- Decision dateMar 18, 2016
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations Under Guideline F
- Importance of Demonstrating Financial Responsibility for Security Clearance Eligibility
- Impact of Bankruptcy on Security Clearance Determinations