Summary
A 59-year-old defense contractor and retired military officer was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The Statement of Reasons cited a Chapter 7 bankruptcy discharged in October 2000, and 14 delinquent or past-due debts totaling $87,089. Specific allegations included $33,484 in delinquent student loans, a past-due utility bill referred for collection, two charged-off credit card accounts, and a cell phone account settled for less than the full amount. These issues raised Disqualifying Conditions AG ¶ 19(a) and AG ¶ 19(c).
However, the judge applied Mitigating Conditions AG ¶ 20(a) and AG ¶ 20(b). It was determined that the bankruptcy, which occurred nearly 20 years prior, was not related to the applicant's current financial situation.
The applicant demonstrated responsible financial behavior by taking steps to resolve outstanding debts. The judge concluded that the applicant's current financial resources indicated a strong likelihood of satisfying any remaining obligations, and that the financial issues did not reflect poor judgment. Based on these factors, the security clearance was granted.
Why the Applicant Prevailed
- The applicant's bankruptcy occurred nearly 20 years ago and was unrelated to current financial issues.
- The applicant has taken steps to resolve outstanding debts, demonstrating responsible financial behavior.
- The applicant's current financial resources indicate a likelihood of satisfying remaining 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 and Does Not Cast Doubt on the Individual's Current Reliability, Trustworthiness, or Good Judgment
- AG ¶ 20(b)appliedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control and the Individual Acted Responsibly Under the Circumstances
Key Rule Quoted
“A security clearance decision is intended only to resolve whether it is clearly consistent with the national interest for an applicant to either receive or continue to have access to classified information.”
Procedural Posture
- SOR issuedAug 14, 2019
- Answer filed—
- Hearing heldJan 28, 2020
- Decision dateApr 13, 2020
Cite For
- Mitigation of Financial Concerns Under Guideline F
- Consideration of Long-term Financial Stability
- Impact of Personal Circumstances on Financial Obligations