Summary
The applicant, a 45-year-old single mother with a history of financial difficulties, sought security clearance under Guideline F due to a Chapter 7 bankruptcy and various debts totaling $67,521. The judge found that the applicant had taken significant steps to resolve her financial issues, including financial counseling and improved income, leading to a favorable decision to grant security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant filed Chapter 7 bankruptcy in February 2012, which was discharged in May 2012; has two student loans in collection; seven medical accounts in collection; a charged-off auto loan; and several consumer collection accounts for a total of $67,521 (1.a). As to SOR ¶ 1.b., Applicant admitted the allegation for the car loan in the amount of $15,417 and included with her answer a copy of the November 2018 settlement arrangement agreement (1.b). SOR ¶ 1.c, is a collection account for a cable bill in the amount of $2,099, as a result of equipment returned but not credited to Applicant (1.c). As to SOR ¶ 1.d, a charged-off-account in the amount of $983, Applicant included with her answer to the SOR a payment arrangement of $25 a month with her bank debit statement (1.d). As to the medical accounts: SOR ¶¶ 1.e, 1.g, 1.h,1.j, 1.k, 1.m, 1.n (duplicate), 1.q, 1.r, and 1.s, for a total of approximately $4,300, Applicant presented documentation that the medical bills have been paid or settled in full (1.e). SOR allegation ¶ 1.f is a collection account for $298 (rental car) Applicant provided proof of several $25 payments with her answer to the SOR (1.f). SOR allegation ¶1.l, a phone collection account in the amount of $1,192, was denied (1.l). The two student loan debts in SOR 1.o and 1.p are duplicates (1.o).
The judge granted the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d). The decision turned on the following: The applicant resolved all debts listed in the SOR, demonstrating financial responsibility; She received financial counseling and improved her budgeting skills, indicating a commitment to financial stability; The applicant's current income and employment situation support her ability to manage her financial obligations.
Why the Applicant Prevailed
- The applicant resolved all debts listed in the SOR, demonstrating financial responsibility.
- She received financial counseling and improved her budgeting skills, indicating a commitment to financial stability.
- The applicant's current income and employment situation support her ability to manage her financial obligations.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)appliedBehavior Happened Long Ago or Infrequently
- AG ¶ 20(b)appliedConditions Largely Beyond the Person's Control
- AG ¶ 20(c)appliedReceived Financial Counseling
- AG ¶ 20(d)appliedGood-faith Effort to Repay Debts
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedOct 9, 2018
- Answer filedNov 26, 2018
- Hearing heldSep 5, 2019Postponed due to medical issues.
- Decision dateOct 7, 2019
Cite For
- Mitigating Conditions Under Guideline F for Financial Considerations
- Importance of Financial Counseling in Resolving Debt Issues
- Whole-person Analysis in Security Clearance Decisions