Summary
A 44-year-old college-educated defense contractor was initially denied a security clearance due to financial considerations under Guideline F. The Statement of Reasons (SOR) alleged six delinquent debts totaling $28,598 and a failure to file timely state and federal income tax returns from 2012 to 2015. Specific allegations included a $3,140 state tax debt, for which a current payment plan was in place, and a disputed $21,149 charge-off for a repossessed auto. The applicant also denied a $2,377 child support debt, stating he had legal custody of his sons and owed no back support, and a $300 collection account, which he asserted was not a delinquency. He admitted to a $1,192 collection account, for which he had a payment plan, and a $440 collection account, for which he established an installment plan after credit counseling.
The judge determined that the applicant's financial difficulties stemmed largely from personal circumstances, including a divorce, periods of unemployment, and caregiving responsibilities. The applicant provided evidence of these contributing factors and demonstrated good-faith efforts to resolve his debts and manage his finances.
Ultimately, the security clearance was GRANTED. The judge concluded that the applicant's financial issues did not undermine his current reliability or trustworthiness, finding sufficient evidence of mitigation.
Why the Applicant Prevailed
- The applicant provided evidence of personal circumstances that contributed to financial difficulties, including a divorce and caregiving responsibilities.
- The applicant demonstrated a good-faith effort to resolve debts and manage finances after periods of unemployment.
- The judge found that the applicant's financial issues did not cast doubt on his current reliability or trustworthiness.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 19(f)raisedFailure to File Annual Federal or State Income Tax Returns
- AG ¶ 20(a)appliedBehavior Happened so Long Ago or Occurred Under Circumstances Unlikely to Recur
- AG ¶ 20(b)appliedConditions That Resulted in Financial Problems Were Largely Beyond the Person's Control
- AG ¶ 20(c)appliedReceived Financial Counseling From a Legitimate Source
- AG ¶ 20(d)appliedInitiated and Adhered to a Good-faith Effort to Repay Overdue Creditors
- AG ¶ 20(g)appliedMade Arrangements with Tax Authority and Is in Compliance
Key Rule Quoted
“A security clearance adjudication is not a debt-collection process. Rather, my obligation is to examine the way an applicant handles personal financial obligations to assess how he may handle his security obligations.”
Procedural Posture
- SOR issuedSep 27, 2017
- Answer filedDec 15, 2017
- Hearing heldSep 12, 2018reconvened after initial hearing on 2018-08-02
- Decision dateMar 27, 2019
Cite For
- Mitigating Circumstances Under Guideline F Due to Personal Hardships
- Consideration of Financial Counseling in Security Clearance Cases
- Impact of Personal Circumstances on Financial Obligations and Security Clearance Eligibility