Summary
The applicant, a 56-year-old senior project manager, faced financial concerns under Guideline F due to a history of bankruptcy and outstanding debts. He demonstrated significant efforts to mitigate these issues, including a repayment plan with the IRS and managing his living expenses effectively. The administrative judge found that the applicant had mitigated the financial concerns and granted him a security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Three timeshare balances ($5,142, $11,300, $14,486) – Applicant provided a copy of his current Experian credit report indicating that the account at allegation 1.b.iii ($14,486) was charged off in 2018 (1.b). This account was for an insurance policy Applicant stated he terminated. The balance at issue is for $2,377 (1.c). This is for a disputed debt regarding damage to a rental car. Applicant has paid nothing on this debt (1.d). Applicant owed a $41,000 tax debt to the federal government (IRS) (1.e).
The judge granted the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(b), AG ¶ 19(c), AG ¶ 19(f). The judge applied mitigating conditions AG ¶ 20(b), AG ¶ 20(d). The decision turned on the following: The applicant initiated a repayment plan with the IRS and made significant progress in reducing his tax debt; He demonstrated a good-faith effort to address his financial obligations and live within his means; The applicant's financial issues were largely due to circumstances beyond his control, including a heart attack.
Why the Applicant Prevailed
- The applicant initiated a repayment plan with the IRS and made significant progress in reducing his tax debt.
- He demonstrated a good-faith effort to address his financial obligations and live within his means.
- The applicant's financial issues were largely due to circumstances beyond his control, including a heart attack.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(b)raisedUnwillingness to Satisfy Debts
- AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
- AG ¶ 19(f)raisedFailure to File or Fraudulently Filing Income Tax Returns
- AG ¶ 20(b)appliedConditions Largely Beyond the Person's Control
- AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue Creditors
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedSep 21, 2018
- Answer filedOct 22, 2018
- Hearing heldJun 12, 2019Applicant waived right to 15 days notice.
- Decision dateAug 19, 2019
Cite For
- Mitigation of Financial Concerns Under Guideline F
- Good-faith Efforts to Repay Debts
- Impact of Personal Circumstances on Financial Obligations