Summary
The applicant, a 44-year-old program manager, faced financial concerns under Guideline F due to multiple debts totaling $144,299. He successfully mitigated these concerns by demonstrating a good faith effort to resolve his debts, which stemmed from circumstances beyond his control, such as divorce and unemployment. The administrative judge granted the applicant's eligibility for a security clearance based on his efforts and character evidence.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant has four charged-off debts totaling $108,853, which he owed to the same credit union for $24,766; $42,103; $22,261; and $19,723 (1.a). Applicant has a bank credit-card debt placed for collection for $7,501 (1.b). Applicant has a charged-off bank debt for $1,180 (1.c). Applicant has four state tax liens from State A for tax years (TY) 2013 to 2016 for $1,088; $9,169; $7,695; and $8,813 (1.d).
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(b), AG ¶ 20(d). The decision turned on the following: The applicant established a track record of debt resolution; He demonstrated a good faith effort to resolve his debts, including paying off several and establishing a plan for the remaining ones; The financial issues were largely due to circumstances beyond his control, such as divorce and unemployment.
Why the Applicant Prevailed
- The applicant established a track record of debt resolution.
- He demonstrated a good faith effort to resolve his debts, including paying off several and establishing a plan for the remaining ones.
- The financial issues were largely due to circumstances beyond his control, such as divorce and unemployment.
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(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
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the adjudicative guidelines.”
Procedural Posture
- SOR issuedDec 1, 2022
- Answer filedDec 22, 2022
- Hearing heldApr 21, 2023via MS Teams
- Decision dateJul 11, 2023
Cite For
- Mitigation of Financial Concerns Under Guideline F
- Good Faith Efforts in Debt Resolution
- Impact of Personal Circumstances on Financial Obligations