Summary
A 39-year-old accounting clerk with two children was granted a public trust position despite initial concerns under Guideline F (Financial Considerations) regarding nine debts totaling over $40,000. The Statement of Reasons detailed these debts, which included federal taxes of $4,967, state taxes of $3,180, federal student loans amounting to $20,834, and $11,764 across six credit card accounts. The applicant admitted to all alleged debts.
However, the applicant demonstrated significant efforts to resolve these financial obligations. She established installment agreements for her federal taxes in 2017 and 2018, and a payment plan for her state taxes in July 2018, which included applying a 2014 overpayment. For her student loans, she began making $50 monthly payments in March 2018, consistently paying through October 2018. Additionally, she engaged a debt-relief company in March 2018 to manage her credit card debt.
The decision to grant eligibility was based on the applicant's meaningful track record of regular and timely payments, her proactive steps to resolve delinquent debts prior to the Statement of Reasons, and her current demonstration of responsible financial management. The judge concluded that her financial situation did not undermine her reliability or trustworthiness.
Why the Applicant Prevailed
- The applicant established a meaningful track record of regular and timely payments towards her debts.
- She initiated action to resolve her delinquent debts before the issuance of the SOR.
- The applicant's current financial management demonstrates responsibility and good judgment.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 19(f)raisedFailure to Pay Annual Federal, State, or Local Income Tax as Required
- AG ¶ 20(a)appliedBehavior Happened so Long Ago, Was Infrequent, or Occurred Under Circumstances Unlikely to Recur
- AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue Creditors
- AG ¶ 20(g)appliedArrangements with Tax Authority to File or Pay Amounts Owed
Key Rule Quoted
“An applicant does not have to be debt-free in order to qualify for a security clearance. Rather, all that is required is that an applicant act responsibly given [her] circumstances and develop a reasonable plan for repayment, accompanied by 'concomitant conduct' that is, actions which evidence a serious intent to effectuate the plan.”
Procedural Posture
- SOR issuedDec 13, 2018
- Answer filedJan 22, 2019Requested decision on the record without a hearing.
- Hearing held—Decision made based on the record.
- Decision dateJun 21, 2019
Cite For
- Good Faith Effort to Repay Debts Under Guideline F
- Mitigating Factors Applicable to Financial Considerations
- Whole-person Analysis in Trustworthiness Determinations