Summary
A 37-year-old claims analyst for a Department of Defense contractor was denied a security clearance due to financial considerations under Guideline F. The applicant's financial history included a 1997 bankruptcy and ten delinquent debts totaling approximately $13,679. These debts included several charged-off credit card accounts ranging from $721 to $1,832, a $262 phone account, a $694 tuition account, and a $5,120 account related to an automobile repossession. Additionally, three credit card accounts, totaling $1,095, $110, and $1,099, were placed for collection between 2002 and 2005.
The decision highlighted that the applicant's ten delinquent debts remained largely unresolved. While some efforts were made to address her financial issues, including payments on one account and attempts to negotiate with creditors, these actions were not deemed sufficient. The judge found that a good faith effort to resolve the debts was not demonstrated until after the Statement of Reasons was issued.
Ultimately, the applicant failed to mitigate the financial concerns. The judge noted that she had not attended financial counseling, and her financial situation was unlikely to improve given her current income. Consequently, eligibility for a sensitive position was denied.
Why the Applicant Was Denied
- The applicant has ten delinquent debts totaling approximately $13,679, which remain unresolved.
- The applicant did not demonstrate a good faith effort to resolve her debts until after the Statement of Reasons was issued.
- The applicant has not attended financial counseling, and her financial situation is unlikely to improve given her current income.
Conditions Referenced
- E2.A6.1.2.1raisedA History of Not Meeting Financial Obligations
- E2.A6.1.2.3raisedInability or Unwillingness to Satisfy Debts
- E2.A6.1.3.3appliedThe Conditions That Resulted in the Behavior Were Largely Beyond the Person's ControlThe applicant's husband's terminal illness contributed to her inability to pay debts.
- E2.A6.1.3.1rejectedThe Behavior Was Not Recent
- E2.A6.1.3.2rejectedThe Behavior Was Isolated
- E2.A6.1.3.4rejectedThe Person Has Received or Is Receiving Counseling for the Problem and There Are Clear Indications That the Problem Is Being Resolved or Under Control
- E2.A6.1.3.6rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant did not take action towards resolving her debts until after the SOR was issued.
Key Rule Quoted
“"The adjudicative process is an examination of a sufficient period of a person's life to make an affirmative determination that the person is eligible for a security clearance."”
Procedural Posture
- SOR issuedAug 31, 2006
- Answer filedSep 12, 2006Applicant responded to SOR and requested a hearing.
- Hearing heldNov 30, 2006
- Decision dateJan 16, 2007
Cite For
- Financial Considerations Disqualifying Conditions Under Guideline F
- Impact of Unresolved Debts on Trustworthiness Determinations
- Consideration of Mitigating Circumstances Related to Personal Hardships