Summary
The applicant, a 32-year-old male with a problematic financial history, was granted security clearance under Guideline F after demonstrating efforts to mitigate financial concerns. Despite having multiple debts, he resolved several through settlements and provided positive character references, which contributed to the favorable outcome.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Charged off auto loan for $21,370 co-signed by Applicant and his younger son’s mother, settled for less than full balance (1.a). Charged off account for $1,712 co-signed for a Navy friend, debt incurred ten years ago, unlikely to recur (1.b). Account in collection for $926, auto insurance account taken out in Applicant's name for his younger sister (1.c). Account in collection for $872, cellphone bill incurred when living with mother and her second husband (1.d). Credit card account charged off for $781, resolved through wage garnishment (1.e). Account charged off for $675, Applicant has not yet made any efforts to pay it (1.f). Account charged off for $623, most recent credit card, Applicant fell behind due to daycare costs (1.g). Account in collection for $445, WiFi bill for a home shared with friends (1.h). Account in collection for $414, WiFi bill for a home shared with friends (1.i). Account charged off for $275, credit card paid in full (1.j). Bank credit card account charged off for $2,171, Applicant hopes to pay it off using tax refund (1.k). Account in collection for $257, charge incurred when mother wanted to split off from shared cellphone lines (1.l).
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(d). The decision turned on the following: Applicant settled a charged-off auto loan for $21,370 for less than the full balance, demonstrating a proactive approach to debt resolution; A credit card debt of $275 was paid in full, further showing the applicant's commitment to addressing financial obligations; Positive character references highlighted the applicant's integrity and work ethic, supporting his reliability.
Why the applicant prevailed
- Applicant settled a charged-off auto loan for $21,370 for less than the full balance, demonstrating a proactive approach to debt resolution.
- A credit card debt of $275 was paid in full, further showing the applicant's commitment to addressing financial obligations.
- Positive character references highlighted the applicant's integrity and work ethic, supporting his reliability.
Conditions referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)appliedBehavior Occurred so Long Ago or Under Circumstances Unlikely to RecurThe debt incurred for a Navy friend's auto loan was ten years ago and unlikely to recur.
- AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue CreditorsThe applicant documented payments and settlements for several debts.
Key rule quoted
“The protection of the national security is the paramount consideration.”
Procedural posture
- SOR issuedJun 9, 2023
- Answer filedJul 12, 2023
- Hearing heldFeb 25, 2025conducted in person
- Decision dateAug 26, 2025
Cite for
- Mitigation of Financial Concerns Under Guideline F
- Importance of Character References in Security Clearance Decisions
- Resolution of Debts as a Factor in Security Clearance Eligibility