Summary
A 50-year-old staff field engineer for a defense contractor was granted a security clearance despite a history of financial difficulties, which raised concerns under Guideline F (Financial Considerations). The Statement of Reasons detailed three bankruptcy filings: Chapter 13 in March 1992 (dismissed March 1993), Chapter 7 in December 1995 (discharged March 1996), and Chapter 13 in February 2012 (discharged November 2014). Additional allegations included a $45,736 student loan delinquency and failure to timely file federal tax returns for 2009 and 2011-2012.
The judge found that the applicant had mitigated these financial concerns. The applicant successfully completed the requirements of his most recent Chapter 13 bankruptcy plan, receiving a discharge in November 2014. Furthermore, he demonstrated a good-faith effort to resolve debts by making consistent payments on a student loan he co-signed.
The applicant also fulfilled an installment agreement with the IRS, resulting in a zero balance for his tax obligations. Based on these actions demonstrating responsible financial behavior and adherence to repayment agreements, the security clearance was granted.
Why the Applicant Prevailed
- The applicant completed the requirements of his Chapter 13 bankruptcy plan and received a discharge in November 2014.
- The applicant has made consistent payments on a student loan he co-signed for his son, demonstrating a good-faith effort to resolve debts.
- The applicant fulfilled his installment agreement with the IRS, resulting in a zero balance for tax payments owed.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- 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(b)appliedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control and the Individual Acted Responsibly Under the Circumstances
- AG ¶ 20(d)appliedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
- AG ¶ 20(g)appliedThe Individual Has Made Arrangements with the Appropriate Tax Authority to File or Pay the Amount Owed and Is in Compliance with Those Arrangements
Key Rule Quoted
“A decision to grant or continue an applicant's security clearance may be made only upon a threshold finding that to do so is clearly consistent with the national interest.”
Procedural Posture
- SOR issuedNov 25, 2016
- Answer filedDec 11, 2016
- Hearing heldAug 1, 2017Applicant requested to keep the record open for additional evidence.
- Decision dateFeb 28, 2018
Cite For
- Mitigation of Financial Issues Under Guideline F
- Good-faith Efforts to Resolve Debts
- Impact of Personal Circumstances on Financial Stability