Summary
The applicant, a 50-year-old supply technician employed by a defense contractor, faced security clearance denial due to significant financial issues, including approximately $34,000 in delinquent debts, tax liens, and a judgment. The judge found that the applicant failed to provide evidence of payments or a plan to address her financial obligations, leading to a conclusion that her financial irresponsibility raised concerns about her reliability and trustworthiness.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant is delinquent on a collection account in the amount of $1,454 (1.a). Applicant is delinquent on a collection account in the amount of $304 (1.b). Applicant is delinquent on a medical collection account in the amount of $287 (1.c). Applicant is delinquent on a medical collection account in the amount of $1,347 (1.d). Applicant owes $10,535 for a federal tax lien (1.e). Applicant owes $31,601 for a tax lien (1.f). Applicant owes $8,793 for a tax lien (1.g). Applicant owes $6,399 for a tax lien (1.h). Applicant owes $4,279 for a charged-off account (1.i). Applicant owes $4,793 for a collection account (1.j). Applicant owes $52 for a medical account (1.k). Applicant has a judgment against her in the amount of $4,279 (1.m).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d), AG ¶ 20(e). The decision turned on the following: The applicant admitted to owing approximately $34,000 in delinquent debts, including six collection accounts, one charged-off account, and four tax liens; The applicant provided no documentation showing payments made on her debts or evidence of financial counseling; The applicant failed to demonstrate that her financial problems were under control or that she had a plan to address them.
Why the Applicant Was Denied
- The applicant admitted to owing approximately $34,000 in delinquent debts, including six collection accounts, one charged-off account, and four tax liens.
- The applicant provided no documentation showing payments made on her debts or evidence of financial counseling.
- The applicant failed to demonstrate that her financial problems were under control or that she had a plan to address them.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to RecurThe delinquent debts remain unpaid and are considered recent.
- AG ¶ 20(b)rejectedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlThe applicant failed to document her assertions regarding circumstances beyond her control.
- AG ¶ 20(c)rejectedThe Person Has Received or Is Receiving Counseling for the ProblemThere is no evidence that the applicant has received financial counseling.
- AG ¶ 20(d)rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue CreditorsThe applicant provided no documentation of payments on any of her debts.
- AG ¶ 20(e)rejectedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due DebtThe applicant admitted to all of the debts listed.
Key Rule Quoted
“An applicant is not required to be debt free, but is required to manage their finances to meet their financial obligations.”
Procedural Posture
- SOR issuedDec 9, 2014
- Answer filedDec 29, 2014Applicant elected to proceed without a hearing.
- Hearing held—No hearing; decision made based on written record.
- Decision dateJul 31, 2015
Cite For
- Failure to Mitigate Financial Considerations Under Guideline F
- Importance of Providing Documentation to Support Claims of Debt Repayment
- Reliance on the Whole-person Concept in Security Clearance Determinations