Summary
The applicant, a 39-year-old corporate human resources manager, faced security concerns under Guideline F due to financial issues totaling $33,318. The applicant demonstrated resolution of her financial problems, including rehabilitating student loans and establishing a debt-consolidation plan, leading to a granted security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant has five delinquent student loans owed to the same student-loan creditor for $6,100, $4,444, $3,537, $3,483, and $2,857 (1.a). Applicant has a charged-off debt for $4,877 (1.b). Applicant has a debt placed for collection for $843 (1.g). Applicant owes a medical debt placed for collection for $721 (1.h). Applicant owes a medical debt placed for collection for $524 (1.i). Applicant owes a state tax lien entered in 2008 for $562 (1.o). Applicant owes a telecommunications debt placed for collection for $371 (1.j). Applicant owes a telecommunications debt placed for collection for $210 (1.k). Applicant owes a utility debt placed for collection for $121 (1.n). Applicant owes a utility debt placed for collection for $1,331 (1.bb).
The judge granted the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(b), AG ¶ 19(c), AG ¶ 19(f). The judge applied mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d), AG ¶ 20(g). The decision turned on the following: The applicant provided evidence of resolution of financial issues, including rehabilitating student loans; The applicant's financial difficulties were primarily due to her husband's unemployment and her own employment changes; The applicant demonstrated a good-faith effort to repay debts and established a debt-consolidation plan.
Why the Applicant Prevailed
- The applicant provided evidence of resolution of financial issues, including rehabilitating student loans.
- The applicant's financial difficulties were primarily due to her husband's unemployment and her own employment changes.
- The applicant demonstrated a good-faith effort to repay debts and established a debt-consolidation plan.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(b)raisedUnwillingness to Satisfy Debts Regardless of the Ability to Do So
- 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(a)appliedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
- AG ¶ 20(b)appliedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
- AG ¶ 20(c)appliedThe Individual Has Received or Is Receiving Financial Counseling for the Problem
- AG ¶ 20(d)appliedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors
- AG ¶ 20(g)appliedThe Individual Has Made Arrangements with the Appropriate Tax Authority to File or Pay the Amount Owed
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the adjudicative guidelines.”
Procedural Posture
- SOR issuedJul 30, 2016
- Answer filedAug 26, 2016Applicant did not request a hearing.
- Hearing held—
- Decision dateOct 13, 2017
Cite For
- Resolution of Financial Issues Under Guideline F
- Good-faith Efforts to Repay Debts
- Impact of External Circumstances on Financial Stability