Summary
A 41-year-old communications specialist and former Army National Guard member was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The Statement of Reasons (SOR) detailed numerous delinquent debts, including a child support arrearage of $3,160, a vehicle-related debt of $3,116, and a credit card debt of $3,100. Additional charged-off debts ranged from $101 to $2,295, alongside a debt of $12,161 that was over 120 days past due. The SOR also noted a failure to timely file federal income tax returns for Tax Year 2017 and approximately $6,000 in delinquent federal income taxes.
Disqualifying conditions related to financial irresponsibility were raised, but the applicant demonstrated significant mitigating factors. He provided evidence of financial counseling and budgeting efforts, and most of his debts were either resolved or had established payment plans.
Ultimately, the applicant's security clearance was granted because he made sufficient progress in resolving his delinquent debts, demonstrating a commitment to addressing his financial obligations.
Why the Applicant Prevailed
- The applicant made sufficient progress in resolving delinquent debts.
- He provided evidence of financial counseling and budgeting efforts.
- Most debts were either resolved or payment plans were established.
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(c)appliedThe Individual Has Received or Is Receiving Financial Counseling for the Problem From a Legitimate and Credible Source
- 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
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the adjudicative guidelines.”
Procedural Posture
- SOR issuedFeb 22, 2021
- Answer filed—
- Hearing heldMar 7, 2022via Microsoft Teams video teleconference
- Decision dateApr 11, 2022
Cite For
- Mitigation of Financial Concerns Under Guideline F
- Evidence of Financial Counseling and Budgeting Efforts
- Good-faith Efforts to Resolve Debts