Summary
The applicant, a 40-year-old defense contractor, sought to retain his security clearance under Guideline F (Financial Considerations) after resolving approximately $60,655 in past-due debts, including student loans and a repossessed automobile. The judge found that the applicant's current financial situation was stable, and he demonstrated a credible intent and ability to maintain this stability, leading to a decision to grant the security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant admitted that he owed approximately $44,602 in past-due student loans. Applicant successfully placed these loans into deferment status in 2016, with repayment to begin in 2018. He has the financial ability to pay these loans when they come due. This debt is being resolved (1.a). Applicant admitted owing $14,562 for a balance due on a repossessed automobile. Applicant has made a payment arrangement with the collection agent, and had begun payments when the record closed. This debt is being resolved (1.b). Applicant admitted that he owed $553 for a past-due debt. Applicant disputed this debt, stating that he paid it. Credit reports supplied by the Government and Applicant confirm that this debt has been disputed (1.c). Applicant admitted owing $315 for a past-due pay day loan. Applicant disputed this debt, stating that he paid it. Credit reports supplied by the Government confirm that this debt has been disputed (1.d). Applicant admitted owing an insurance company a past-due debt in the amount of $312. Applicant disputed this debt, stating that he paid it. Credit reports supplied by the Government confirm that this debt has been disputed (1.e). Applicant admitted owing back child support in the amount of $311. This arrearage occurred because of a period of unemployment. He has since paid this arrearage in full, and is now current, as confirmed by credit report reports supplied by the Government and Applicant. This debt is resolved (1.f). Applicant admitted that he filed for Chapter 13 bankruptcy in December 2012. He voluntarily converted the case to a Chapter 7 bankruptcy in October 2013 because he could not make the plan payments. He received a discharge on January 7, 2014 (1.g).
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(d), AG ¶ 20(e). The decision turned on the following: Applicant resolved all past-due debts before the hearing; Current financial situation is stable and manageable; Applicant demonstrated a credible intent and ability to maintain financial stability.
Why the Applicant Prevailed
- Applicant resolved all past-due debts before the hearing.
- Current financial situation is stable and manageable.
- Applicant demonstrated a credible intent and ability to maintain financial stability.
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 Infrequently
- AG ¶ 20(b)appliedConditions Beyond Control
- AG ¶ 20(d)appliedGood-faith Effort to Repay Debts
- AG ¶ 20(e)appliedReasonable Basis to Dispute Debts
Key Rule Quoted
“Failure to live within one’s means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual’s reliability, trustworthiness, and ability to protect classified or sensitive information.”
Procedural Posture
- SOR issuedJan 20, 2017
- Answer filedFeb 6, 2017
- Hearing heldNov 1, 2017Originally scheduled for September 7, 2017, but continued.
- Decision dateSep 11, 2018
Cite For
- Resolution of Past-due Debts Under Guideline F
- Stability in Financial Situation as a Mitigating Factor
- Demonstrating Credible Intent to Maintain Financial Responsibility