Summary
A 43-year-old materials analyst for a defense contractor was granted a security clearance despite concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The applicant had incurred approximately $60,000 in credit card debt, which she attempted to address through a Chapter 13 bankruptcy filing. While a Chapter 7 bankruptcy was never filed in 2001, as confirmed by court records and her attorney, the applicant faced allegations regarding ten delinquent debts.
The applicant demonstrated significant efforts to resolve these financial issues. She made specific payments, including a $1,904 settlement on April 19, 2007, and a $2,242.13 settlement on May 29, 2007. Another debt was settled for $2,214.61 on November 4, 2006, and a $549.89 settlement was paid on April 18, 2007. Other debts were addressed through payment plans, including one established on November 7, 2007, for $50 monthly, and another on October 26, 2007, also for $50 per month, with one plan receiving $500 monthly payments. One debt was paid with bank loan proceeds on October 7, 2007, and another could not be located.
The judge found that the applicant made a good faith effort to repay overdue creditors and resolve her debts. Her financial difficulties were largely attributed to circumstances beyond her control, such as job loss. Furthermore, the applicant provided sufficient disclosures regarding her financial history on her security clearance application, leading to the granting of her clearance.
Why the applicant prevailed
- The applicant demonstrated a good faith effort to repay overdue creditors and resolve debts.
- The applicant's financial difficulties were largely due to circumstances beyond her control, including job loss.
- The applicant provided sufficient disclosures regarding her financial history on her security clearance application.
Conditions referenced
- F.19.araisedInability or Unwillingness to Satisfy Debts
- F.19.braisedIndebtedness Caused by Frivolous or Irresponsible Spending
- F.19.craisedA History of Not Meeting Financial Obligations
- E.16.araisedDeliberate Omission, Concealment, or Falsification of Relevant Facts
- F.20.bappliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
- F.20.cnotedThe Person Has Received or Is Receiving Counseling for the Problem
- F.20.dappliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
Key rule quoted
“An applicant has the ultimate burden of demonstrating that it is clearly consistent with the national interest to grant or continue his security clearance.”
Procedural posture
- SOR issuedMar 30, 2007
- Answer filedApr 26, 2007
- Hearing heldSep 19, 2007record remained open until October 3, 2007
- Decision dateDec 3, 2007
Cite for
- Mitigation of Financial Concerns Due to Job Loss
- Good Faith Efforts in Debt Repayment
- Disclosure of Financial History in Security Clearance Applications