Summary
This case concerns a 49-year-old change-management analyst and U.S. Air Force veteran whose security clearance application was reviewed under Guideline F (Financial Considerations). Initial concerns arose from several financial issues, including a Chapter 7 Bankruptcy filing in early 2001 due to marital debt, an outstanding federal tax debt of approximately $3,697 from 2014, and a $19,818 deficiency balance from a voluntarily repossessed vehicle. Additionally, the applicant had a $5,000 loan from 2006 and a credit card debt of $8,258, though the latter was subsequently paid and removed from his credit report. Other minor issues included a paid foreign utility bill and a landlord fee that was also removed from his credit report.
The applicant successfully mitigated these concerns by resolving all delinquent accounts through a Chapter 13 Bankruptcy filing. The financial difficulties were largely attributed to circumstances beyond his control, such as unemployment and divorce.
Furthermore, the applicant completed financial counseling and has not incurred any recent delinquent debt. Demonstrating responsible financial management and addressing the underlying issues, the applicant's security clearance was granted.
Why the Applicant Prevailed
- Applicant resolved all delinquent accounts through Chapter 13 Bankruptcy.
- Financial difficulties were largely due to circumstances beyond his control, including unemployment and divorce.
- Applicant completed financial counseling and has not incurred recent delinquent debt.
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(a)appliedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur and Does Not Cast Doubt on the Individual’s Current Reliability, Trustworthiness, or Good Judgment
- 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(c)appliedThe Individual Has Received or Is Receiving Financial Counseling for the Problem From a Legitimate and Credible Source
- AG ¶ 20(d)appliedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
- AG ¶ 20(e)appliedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due Debt Which Is the Cause of the Problem
Key Rule Quoted
“A security clearance adjudication is an evaluation of an individual’s judgment, reliability, and trustworthiness. It is not a debt-collection procedure.”
Procedural Posture
- SOR issuedApr 7, 2017
- Answer filedAug 31, 2017
- Hearing heldNov 28, 2017
- Decision dateAug 31, 2018
Cite For
- Mitigation of Financial Issues Under Guideline F
- Impact of Personal Circumstances on Financial Obligations
- Importance of Financial Counseling in Security Clearance Evaluations