Summary
A 33-year-old designer employed at a shipbuilding company was denied a security clearance under Guideline F (Financial Considerations) due to a significant history of financial irresponsibility. The applicant owed over $50,000 in delinquent debts, primarily consisting of child support and student loans. Specific allegations included approximately $7,261 in delinquent child support with wage garnishment, $23,402 in student loan debt placed for collection by the U.S. Department of Education, and an additional $31,496 in child support, including $30,614 in arrears. Another $22,831 in past due student loan debt was also cited.
The applicant had a history of 15 debts placed for collection and one charged-off debt. He filed for Chapter 7 bankruptcy in November 2003, listing $58,608.05 in total liabilities, and received a discharge in March 2004. However, he still owed more than $50,000 in delinquent child support and student loan debt post-discharge. His financial problems were deemed long-standing, with no established long-term track record of good debt management. The applicant attributed his situation to being overextended, poor planning, and mismanagement, and believed sharing living expenses with a companion would help address his debts.
The denial was based on the applicant's history of delinquent indebtedness exceeding $50,000 and his failure to demonstrate a good-faith effort to resolve his debts after bankruptcy discharge. His failure to pay child support and student loans was seen as an indicator of financial irresponsibility, leading to the conclusion that granting clearance was not consistent with national interest.
Why the applicant was denied
- Applicant has a history of delinquent indebtedness exceeding $50,000.
- Applicant failed to demonstrate a good-faith effort to resolve his debts after bankruptcy discharge.
- Failure to pay child support and student loans indicates financial irresponsibility.
Conditions referenced
- E2.A6.1.2.1raisedA History of Not Meeting Financial Obligations
- E2.A6.1.2.3raisedInability or Unwillingness to Satisfy Debts
Key rule quoted
“"The only purpose of a security-clearance decision is to decide if it is clearly consistent with the national interest to grant or continue a security clearance for an applicant."”
Procedural posture
- SOR issuedJan 15, 2004
- Answer filedJan 31, 2004Applicant did not request a hearing.
- Hearing held—No hearing was requested.
- Decision dateJan 14, 2005
Cite for
- Denial of Clearance Due to Significant Delinquent Debts Under Guideline F
- Failure to Demonstrate Good-faith Effort to Resolve Financial Obligations
- Impact of Financial Irresponsibility on Security Clearance Eligibility