Summary
A 45-year-old college graduate and defense contractor employee was initially denied a security clearance under Guideline F (Financial Considerations) due to six delinquent debts totaling $71,072, with two student loans accounting for $62,076 of that amount. Disqualifying conditions were raised under Adjudicative Guidelines Paragraphs 19(a) and 19(c).
The applicant demonstrated that two of the alleged debts were under active payment plans, and two others had been paid in full. Although technically in default, she had made routine monthly payments ranging from $5 to $6,847 between October 2005 and January 2019. She testified that her financial difficulties stemmed from a 2010 divorce, following marital problems that began in 2009. During her marriage, her spouse was the sole breadwinner while she was a full-time mother, and after the divorce, her ex-spouse provided only occasional child support.
The judge determined that the applicant's financial issues were largely due to circumstances beyond her control, specifically the divorce and subsequent loss of income. The applicant provided evidence of adherence to payment plans, full payment of some debts, and a good-faith effort to resolve her outstanding obligations. Mitigating conditions under Adjudicative Guidelines Paragraphs 20(a), 20(b), and 20(d) were applied, and the security clearance was ultimately GRANTED.
Why the Applicant Prevailed
- The applicant provided evidence of adherence to payment plans for some debts and had paid others in full.
- The judge found that the applicant's financial difficulties were largely due to her divorce and circumstances beyond her control.
- The applicant demonstrated a good-faith effort to repay overdue creditors and resolve her debts.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)appliedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
- AG ¶ 20(b)appliedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
- AG ¶ 20(d)appliedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
Key Rule Quoted
“A security clearance adjudication is not a debt-collection process. Rather, my obligation is to examine the way an applicant handles her personal financial obligations to assess how she may handle her security obligations.”
Procedural Posture
- SOR issuedJul 6, 2018
- Answer filedAug 2, 2018
- Hearing heldJan 15, 2019mutually agreed date
- Decision dateJan 28, 2019
Cite For
- Mitigation of Financial Issues Under Guideline F Due to Circumstances Beyond Control
- Good-faith Efforts to Resolve Debts as a Mitigating Factor
- Consideration of Personal Circumstances Affecting Financial Stability in Security Clearance Decisions