Summary
The applicant, a 39-year-old naturalized U.S. citizen from the Philippines, faced security concerns under Guideline F due to $40,766 in delinquent debt. He entered a debt-management plan to address his financial issues and demonstrated a good faith effort to repay his debts. The judge granted security clearance conditioned on continued timely payments.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant owes charged-off debts of $18,145 (1.a). Applicant owes charged-off debts of $6,699 (1.b). Applicant owes collection debts of $3,066 (1.c). Applicant owes charged-off debts of $2,168 (1.d). Applicant owes collection debts of $895 (1.e). Applicant owes charged-off debts of $4,763 (1.f). Applicant owes charged-off debts of $4,593 (1.g). Applicant owes charged-off debts of $437 (1.h).
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). The decision turned on the following: The applicant entered into a debt-management plan to address his financial issues; He made significant payments toward his delinquent debts, totaling $7,747 as of February 2020; The applicant demonstrated a willingness to resolve his debts and improve his financial situation.
Why the Applicant Prevailed
- The applicant entered into a debt-management plan to address his financial issues.
- He made significant payments toward his delinquent debts, totaling $7,747 as of February 2020.
- The applicant demonstrated a willingness to resolve his debts and improve his financial situation.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(c)rejectedThe Person Has Received or Is Receiving Counseling for the Problem From a Legitimate and Credible SourceThe applicant has not had any financial counseling.
- AG ¶ 20(d)appliedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
Key Rule Quoted
“An applicant is not required to be debt free, but is required to manage his finances in a way as to exhibit sound judgment and responsibility.”
Procedural Posture
- SOR issuedNov 8, 2019
- Answer filedNov 22, 2019
- Hearing held—Decision made on written record.
- Decision dateMar 2, 2020
Cite For
- Good Faith Effort to Repay Debts Under Guideline F
- Conditional Clearance Based on Ongoing Debt Repayment
- Consideration of Financial Management in Security Clearance Decisions