Summary
The applicant, a 57-year-old retired Navy senior chief petty officer, sought security clearance under Guideline F for financial considerations. He admitted to some debts totaling approximately $80,000 but demonstrated significant progress in resolving these issues, leading to a favorable decision granting him eligibility for access to classified information.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant denied owing $11,777 for a judgment to a creditor (1.a). Applicant admitted owing $16,566 for a delinquent credit card debt (1.b). Applicant denied owing a charged-off debt to a creditor in the amount of $9,855 (1.c). Applicant admitted owing a creditor $21,068 for a charged-off account (1.d). Applicant denied owing $3,265 for a charged-off debt (1.e). Applicant denied owing $10,103 for a charged-off debt (1.f). Applicant denied owing $7,689 for a charged-off debt (1.g). Applicant admitted that he had a timeshare foreclosed on in 2022 for failure to make monthly payments (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(b), AG ¶ 20(d). The decision turned on the following: The applicant resolved six of the seven past-due debts and demonstrated a good-faith effort to address his financial issues; The judge found that the applicant's financial difficulties were largely due to circumstances beyond his control, such as divorce; The applicant's sustained track record of making payments towards his debts supported his reliability and trustworthiness.
Why the applicant prevailed
- The applicant resolved six of the seven past-due debts and demonstrated a good-faith effort to address his financial issues.
- The judge found that the applicant's financial difficulties were largely due to circumstances beyond his control, such as divorce.
- The applicant's sustained track record of making payments towards his debts supported his reliability and trustworthiness.
Conditions referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
- AG ¶ 20(b)appliedConditions Largely Beyond Control
- AG ¶ 20(d)appliedGood-faith Effort to Repay Debts
Key rule quoted
“The adjudicative guidelines do not require that an applicant be debt-free.”
Procedural posture
- SOR issuedSep 7, 2022
- Answer filedNov 21, 2022
- Hearing heldJan 2, 2024Applicant elected not to attend a hearing.
- Decision dateJan 17, 2024
Cite for
- Mitigating Conditions for Financial Considerations Under Guideline F
- Impact of Personal Circumstances on Financial Reliability
- Requirements for Demonstrating a Credible Plan to Resolve Debts