Summary
A 37-year-old administrative assistant for a defense contractor was granted a security clearance despite concerns under Guideline F (Financial Considerations). The Statement of Reasons cited 11 overdue debts totaling $10,658, which became delinquent between October 2001 and August 2003, primarily due to medical issues and a divorce. These debts included charged-off credit card accounts that were incorporated into her Chapter 13 bankruptcy plan.
Disqualifying conditions related to financial irresponsibility were raised. However, the Administrative Judge applied several mitigating conditions, noting the applicant's proactive efforts to address her financial difficulties. She filed for Chapter 13 bankruptcy before being notified of her security clearance jeopardy and had made seven regular payments under her plan, demonstrating a serious commitment to resolving her debts.
Additionally, persuasive character evidence from supervisors and colleagues supported her reliability and trustworthiness. The Judge concluded that her good faith efforts and commitment to financial responsibility warranted granting the security clearance.
Why the Applicant Prevailed
- The applicant filed for Chapter 13 bankruptcy before being notified of her security clearance jeopardy, demonstrating proactive financial management.
- She made seven regular payments under her bankruptcy plan, indicating a serious commitment to resolving her debts.
- Persuasive character evidence from supervisors and colleagues supported her reliability and trustworthiness.
Conditions Referenced
- FC DC 19.a.raisedInability or Unwillingness to Satisfy Debts
- FC DC 19.c.raisedA History of Not Meeting Financial Obligations
- FC MC 20.b.appliedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
- FC MC 20.c.appliedThe Person Has Received or Is Receiving Counseling for the Problem And/or There Are Clear Indications That the Problem Is Being Resolved or Is Under Control
- FC MC 20.d.appliedThe Individual Has Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
Key Rule Quoted
“The failure to pay debts in a timely manner places an individual at risk of committing acts of poor judgment to generate funds.”
Procedural Posture
- SOR issuedMar 30, 2007
- Answer filedApr 24, 2007
- Hearing heldSep 12, 2007
- Decision dateNov 13, 2007
Cite For
- Good Faith Efforts in Resolving Financial Issues Under Guideline F
- Mitigating Circumstances Related to Financial Difficulties
- Character Evidence Supporting Reliability and Trustworthiness in Security Clearance Cases