Summary
The applicant, a 48-year-old defense contractor, faced allegations under Guideline F for financial considerations, claiming approximately $31,676 in debts. He admitted to several debts while denying others, asserting he has a repayment plan and has taken steps to improve his financial situation through credit counseling. The judge found that the applicant mitigated the security concerns, granting him eligibility for access to classified information.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant admitted that he owed a creditor $8,560 for a past-due debt. No payments have been made on this debt. He stated that it is part of his debt repayment plan, and he is due to begin making payments on it starting in the second quarter of 2026 at the rate of $250 a month. This debt is not resolved (1.a). Applicant admitted that he owed a creditor $4,015 for a past-due debt. No payments have been made on this debt. He stated that it is part of his debt repayment plan, and he is due to begin making payments on it starting in the fourth quarter of 2025 at the rate of $200 a month. This debt is not resolved (1.b). Applicant denied that he owed a creditor $3,818 for a past-due debt. This debt was paid in 2023, as shown by documentation. This debt has been resolved (1.c). Applicant admitted that he owed a creditor $2,389 for a past-due debt. No payments have been made on this debt. He stated that it is part of his debt repayment plan, and he is due to begin making payments on it starting in the third quarter of 2025 at the rate of $150 a month. This debt is not resolved (1.d). Applicant admitted that he owed a creditor $2,257 for a past-due debt. No payments have been made on this debt. He stated that it is part of his debt repayment plan, and he is due to begin making payments on it starting in the first quarter of 2026 at the rate of $150 a month. This debt is not resolved (1.e). Applicant admitted that he owed this creditor $2,054 for a past-due debt. He stated that it is part of his debt repayment plan and that he has been making timely monthly payments on it since August 2024. He has two payments left to satisfy his agreement with the creditor. He submitted documentation supporting his statements. This debt is being resolved (1.f). Applicant admitted that he owed this creditor $1,996 for a past-due debt. No payments have been made on this debt. He stated that it is part of his debt repayment plan, and he is due to begin making payments on it starting in the third quarter of 2025 at the rate of $150 a month. This debt is not resolved (1.g). Applicant admitted that he owed this creditor $923 for a past-due debt. He recently made a payment arrangement with the creditor and made the first payment in fulfillment of the agreement. This debt is being resolved (1.h). Applicant denied that he owed a creditor $763 for a past-due debt. The creditor agreed that there were errors in reporting the debt and it was deleted from his credit report. This debt has been resolved through dispute (1.i). Applicant admitted that he owed this creditor $2,358 for a past-due debt. No payments have been made on this debt. He stated that it is part of his debt repayment plan, and he is due to begin making payments on it starting in the fourth quarter of 2025 at the rate of $150 a month. However, Government Exhibit 5, the July 16, 2021 credit report at page 8 states with regard to this account, 'Possible Balance Due.' This debt does not appear on the most recent credit report in the record, dated June 6, 2025. Based on the state of the record, this debt is not proven (1.j). Applicant denied that he owed this creditor $1,843 for a past-due debt. He stated that he had no knowledge of this debt. The credit reporting agency did an investigation after he filed a dispute and deleted the account. This debt has been resolved through dispute (1.k). Applicant admitted that he owed this creditor $700 for a past-due debt. However, after being contacted by Applicant the credit grantor conducted an audit of the account and determined that he did not have a delinquent debt with them. This is confirmed by a letter from the credit grantor dated June 5, 2025. This debt has been resolved through dispute (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(b), AG ¶ 20(c), AG ¶ 20(d). The decision turned on the following: The applicant demonstrated a credible intent to repay debts through a structured repayment plan; He received financial counseling and education, which contributed to his improved financial management; The applicant resolved several debts and disputed others successfully, showing proactive financial behavior.
Why the Applicant Prevailed
- The applicant demonstrated a credible intent to repay debts through a structured repayment plan.
- He received financial counseling and education, which contributed to his improved financial management.
- The applicant resolved several debts and disputed others successfully, showing proactive financial behavior.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
- AG ¶ 20(a)appliedBehavior Occurred Long Ago or Under Circumstances Unlikely to Recur
- AG ¶ 20(b)appliedConditions Largely Beyond the Person's Control
- AG ¶ 20(c)appliedReceived Financial Counseling
- 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 issuedJan 8, 2025
- Answer filedMar 11, 2025
- Hearing heldJun 11, 2025
- Decision dateJul 15, 2025
Cite For
- Mitigation of Financial Issues Under Guideline F
- Importance of Financial Counseling in Security Clearance Cases
- Criteria for Establishing a Repayment Plan for Debts