Summary
The applicant, a 36-year-old defense contractor employee, faced financial concerns under Guideline F due to a history of financial issues, including a Chapter 7 bankruptcy and several delinquent debts. However, he demonstrated significant progress in addressing these debts, including paying off some and disputing others, leading the judge to conclude that his current financial situation does not undermine his reliability or trustworthiness, resulting in the granting of his security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: $5,039 owed to an apartment landlord (1.a). $627 owed to a utility company from 2014 (1.b). $1,084 telecommunications debt (1.c). $1,490 medical debt (1.d). $1,052 delinquent debt owed to a bank (1.e). $620 delinquent debt owed to a collection company (1.f). $878 delinquent debt owed to a collection company (1.g). $323 debt owed to a jewelry store (1.h). $3,634 debt owed to a jewelry store (1.i). $242 owed to a collection company for internet and cable services (1.j). $135 delinquent debt owed to a public utility company (1.k). $1,101 and $788 debts owed to a finance company (1.l).
The judge granted the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c), AG ¶ 19(f). The judge applied mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(d), AG ¶ 20(g). The decision turned on the following: The applicant made a good-faith effort to repay overdue creditors and resolve debts; He entered into an installment agreement with the IRS and paid off his back federal taxes; The applicant's financial issues were largely due to circumstances beyond his control, and he has shown responsible behavior in managing his finances.
Why the Applicant Prevailed
- The applicant made a good-faith effort to repay overdue creditors and resolve debts.
- He entered into an installment agreement with the IRS and paid off his back federal taxes.
- The applicant's financial issues were largely due to circumstances beyond his control, and he has shown responsible behavior in managing his finances.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 19(f)raisedFailure to File or Fraudulently Filing Annual Federal, State, or Local Income Tax Returns or Failure to Pay Annual Federal, State, or Local Income Tax as Required
- 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
- AG ¶ 20(d)appliedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
- AG ¶ 20(g)appliedThe Individual Has Made Arrangements with the Appropriate Tax Authority to File or Pay the Amount Owed and Is in Compliance with Those Arrangements
Key Rule Quoted
“The process is not designed to ensure that debts are collected; the process is designed to evaluate an applicant’s judgment, reliability, trustworthiness, and ability to protect classified information.”
Procedural Posture
- SOR issuedOct 8, 2020
- Answer filedOct 20, 2020
- Hearing heldJun 2, 2022
- Decision dateJul 27, 2022
Cite For
- Mitigation of Financial Concerns Under Guideline F
- Good-faith Efforts to Resolve Debts
- Impact of Personal Circumstances on Financial Reliability