Summary
The applicant, a 32-year-old defense contractor employee, faced allegations under Guideline F for financial considerations due to approximately $49,226 in debts. Despite admitting to the debts, the applicant demonstrated good faith efforts to resolve them, including paying off some debts and maintaining a stable financial situation. The administrative judge found that the applicant's actions and intent to address his financial obligations mitigated the security concerns, resulting in a granted security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant admitted that he owed $39,111 for a collection account connected to a medical bill (1.a). Applicant admitted that he owed $4,373 for a charged-off account with a credit card company (1.b). Applicant admitted that he owed $2,082 for a charged-off account with a credit card company (1.c). Applicant admitted that he owed a charged-off debt to a bank in the amount of $1,490 (1.d). Applicant admitted that he owed a past-due debt for a mobile telephone bill in the amount of $656 (1.e). Applicant admitted that he owed $655 for a collection account with a credit card company (1.f). Applicant admitted that he owed $542 for a charged-off account with a department store (1.g). Applicant admitted that he owed a past-due medical debt in the amount of $317 (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(a), AG ¶ 20(b), AG ¶ 20(d). The decision turned on the following: The applicant demonstrated a stable financial situation and good faith efforts to resolve debts; The applicant's employment provided sufficient means to address outstanding debts; The applicant's past financial issues were largely due to circumstances beyond his control, such as a hospitalization without insurance.
Why the Applicant Prevailed
- The applicant demonstrated a stable financial situation and good faith efforts to resolve debts.
- The applicant's employment provided sufficient means to address outstanding debts.
- The applicant's past financial issues were largely due to circumstances beyond his control, such as a hospitalization without insurance.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
- AG ¶ 20(a)appliedBehavior Happened so Long Ago, Was Infrequent, or Occurred Under Circumstances Unlikely to Recur
- AG ¶ 20(b)appliedConditions That Resulted in Financial Problems Were Largely Beyond the Person's Control
- AG ¶ 20(d)appliedIndividual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors
Key Rule Quoted
“. . . an applicant is not required, as a matter of law, to establish that he has paid off each and every debt listed in the SOR. All that is required is that an applicant demonstrate that he has established a plan to resolve his financial problems and taken significant actions to implement that plan.”
Procedural Posture
- SOR issuedJun 9, 2023
- Answer filedJun 13, 2023
- Hearing heldSep 12, 2023
- Decision dateMar 29, 2024
Cite For
- Good Faith Efforts to Resolve Financial Obligations Under Guideline F
- Stability of Financial Situation as a Mitigating Factor
- Impact of Circumstances Beyond Control on Financial Issues