Summary
The applicant, a 40-year-old employee of a Department of Defense contractor, sought to maintain his security clearance under Guideline F due to financial considerations. He faced significant delinquent debts primarily due to periods of unemployment but demonstrated a good-faith effort to resolve these issues. The judge found that the applicant's financial problems were largely beyond his control and that he was actively working to improve his financial situation, leading to a decision to grant his security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: a mortgage account that was delinquent in the amount of $14,175 (1.a). thirteen delinquent student loan accounts placed for collection, an approximate total balance of $80,684 (1.b). a $2,991 charged-off jewelry store account (1.m). a $1,471 delinquent cell phone account placed for collection (1.o). a $1,186 delinquent cell phone account placed for collection (1.q). a $523 charged-off account (1.r). a $428 charged-off account (1.s). a $422 charged-off cell phone account (1.t). a $416 delinquent medical account (1.u). a $72 medical account placed for collection (1.v). a $1,275 judgment with an unknown creditor filed against Applicant in 2012 (1.w). a $764 judgment filed against Applicant in 2015 (1.x). four traffic tickets owed to a city government in the respective amounts of $250, $250, $105, and $55 that were placed for collection (1.y).
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's financial issues were largely due to periods of unemployment affecting both him and his wife; He demonstrated a good-faith effort to resolve his debts, including settling several accounts and entering repayment agreements; The applicant's past financial issues did not cast doubt on his reliability, trustworthiness, or good judgment.
Why the applicant prevailed
- The applicant's financial issues were largely due to periods of unemployment affecting both him and his wife.
- He demonstrated a good-faith effort to resolve his debts, including settling several accounts and entering repayment agreements.
- The applicant's past financial issues did not cast doubt on his reliability, trustworthiness, or good judgment.
Conditions referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
- AG ¶ 20(b)appliedConditions Beyond ControlThe applicant's financial problems were aggravated by periods of unemployment.
- AG ¶ 20(d)appliedGood-faith Effort to Repay DebtsThe applicant provided proof of resolving several debts and was actively working on others.
Key rule quoted
“An applicant is not required to be debt free, but is required to manage his finances in such a way as to meet his financial obligations.”
Procedural posture
- SOR issuedJun 8, 2016
- Answer filedAug 3, 2016
- Hearing heldDec 19, 2017
- Decision dateMar 30, 2018
Cite for
- Mitigating Conditions Under Guideline F Due to Financial Difficulties
- Good-faith Efforts to Resolve Delinquent Debts
- Impact of Unemployment on Financial Obligations