Summary
The applicant, a 33-year-old defense contractor employee, faced security concerns under Guideline F (Financial Considerations) due to a history of financial issues, including a bankruptcy and multiple delinquent accounts. The applicant demonstrated significant efforts to resolve these issues, including establishing repayment plans and making payments on debts, leading to the granting of eligibility for a security clearance. The allegations under Guideline B (Foreign Influence) were withdrawn by the government.
Under Guideline B (Foreign Influence) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant denied all of the SOR allegations pertaining to foreign influence (2.a). In addition to his period of unemployment, Applicant reported that he had a 2012 bankruptcy discharge under Chapter 7 of the U.S. Bankruptcy Code (1.a). SOR ¶ 1.b. is with a servicer of student loans, and has an unpaid and past-due balance of $15,734 that was placed for collection in 2017 (1.b). The remaining defaulted student loans are currently held by the DOE, and they are in the following amounts: SOR ¶ 1.c. ($7,659); SOR ¶ 1.d. ($4,451); SOR ¶ 1.f. ($4,665); SOR ¶ 1.g. ($3,818); SOR ¶ 1.h. ($3,476); SOR ¶ 1.j. ($1,896); SOR ¶ 1.k. ($3,329); SOR ¶ 1.l. ($3,169); SOR ¶ 1.m. ($2,309); SOR ¶ 1.n. ($1,497); and SOR ¶ 1.o. ($1,431) (1.c). SOR ¶ 1.i. is a credit-card account with an unpaid balance of $2,867 that was placed for collection (1.i).
The judge granted the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(c), AG ¶ 20(d), AG ¶ 20(a). The decision turned on the following: The applicant admitted to financial issues but demonstrated significant efforts to resolve them; The applicant established a budget and repayment plans for delinquent debts; The applicant's financial situation showed improvement and stability, with evidence of ongoing payments.
Why the Applicant Prevailed
- The applicant admitted to financial issues but demonstrated significant efforts to resolve them.
- The applicant established a budget and repayment plans for delinquent debts.
- The applicant's financial situation showed improvement and stability, with evidence of ongoing payments.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
- AG ¶ 20(c)appliedReceived Financial Counseling
- AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue Creditors
- AG ¶ 20(a)appliedBehavior Occurred Long Ago or Unlikely to Recur
Key Rule Quoted
“An applicant is not required, as a matter of law, to establish that he [or she] has paid off each and every debt listed in the SOR.”
Procedural Posture
- SOR issuedSep 24, 2019
- Answer filedOct 11, 2019Applicant elected to have the case decided on the written record.
- Hearing held—Decision made based on written record.
- Decision dateJul 16, 2020
Cite For
- Mitigation of Financial Issues Under Guideline F
- Withdrawal of Foreign Influence Allegations Under Guideline B
- Demonstration of Good-faith Efforts in Resolving Debts