Summary
A 63-year-old defense contractor employee was granted a security clearance despite concerns under Guideline F (Financial Considerations). The Statement of Reasons (SOR) alleged a foreclosed investment property and ten delinquent debts totaling approximately $47,700. These issues raised disqualifying conditions under Adjudicative Guidelines (AG) ¶ 19(a) and AG ¶ 19(b).
The applicant admitted to most debts and demonstrated active efforts to resolve them. In approximately 2016, he contracted with a debt-settlement company. Four debts with original balances totaling $36,041 were settled for $17,398, and the remaining debts alleged in the SOR, with the exception of two small debts of $576 and $121, were enrolled in a debt resolution program. The applicant's current financial situation was noted as significantly improved.
The administrative judge applied mitigating conditions under AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), and AG ¶ 20(d). The judge found that the applicant had proactively addressed his financial issues, provided credible testimony about his recovery and intent to settle remaining debts, and that a disputed debt was de minimis. Based on these factors, the judge concluded that the applicant's financial problems were being resolved and granted eligibility for a security clearance.
Why the Applicant Prevailed
- The applicant demonstrated a proactive approach to resolving his financial issues through a debt-settlement program.
- He provided credible testimony regarding his financial recovery and intentions to settle remaining debts.
- The judge found that the disputed debt was de minimis and insufficient to affect the applicant's suitability for a security clearance.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(b)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedBehavior Happened Long Ago or Infrequently
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's Control
- AG ¶ 20(c)appliedReceiving Financial Counseling
- AG ¶ 20(d)appliedGood-faith Effort to Repay Debts
Key Rule Quoted
“A security clearance adjudication is not a debt-collection procedure. It is a procedure designed to evaluate an applicant’s judgment, reliability, and trustworthiness.”
Procedural Posture
- SOR issuedMar 29, 2019
- Answer filedApr 29, 2019
- Hearing heldAug 7, 2019
- Decision dateSep 4, 2019
Cite For
- Mitigation of Financial Considerations Under Guideline F
- Importance of Demonstrating a Plan to Resolve Debts
- De Minimis Debts Not Affecting Security Clearance Eligibility