Summary
A 40-year-old defense contractor and veteran was granted a security clearance despite concerns under Guideline F (Financial Considerations). Disqualifying conditions were raised under AG ¶ 19(a), (b), and (c) due to approximately $37,000 in debt. These financial difficulties stemmed from medical expenses and a period of unemployment.
To address these issues, the applicant filed for Chapter 13 Bankruptcy. The judge noted that the circumstances leading to the financial problems were largely beyond the applicant's control. Mitigating conditions AG ¶ 20(a), (b), (c), and (d) were applied.
The applicant acknowledged his financial difficulties and demonstrated a commitment to resolving them by making timely payments to the bankruptcy trustee. Based on these actions and the involuntary nature of the debt, the security clearance was granted.
Why the Applicant Prevailed
- The applicant acknowledged his financial difficulties and took steps to resolve them through Chapter 13 Bankruptcy.
- He provided evidence of timely payments to the bankruptcy trustee, demonstrating a commitment to repaying his debts.
- The circumstances leading to his financial issues were largely beyond his control, including medical hardships and unemployment.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(b)raisedUnwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)appliedThe Behavior Happened so Long Ago, 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 and There Are Clear Indications That the Problem Is Being Resolved or Is Under Control
- AG ¶ 20(d)appliedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
Key Rule Quoted
“A security clearance adjudication is not a debt-collection process. Instead, an administrative judge examines the way an applicant handles his or her personal financial obligations to assess how they may handle their security responsibilities.”
Procedural Posture
- SOR issuedJan 12, 2018
- Answer filedFeb 6, 2018Requested determination on the administrative record.
- Hearing held—Pro se representation.
- Decision dateMay 23, 2018
Cite For
- Mitigation of Financial Issues Under Guideline F
- Consideration of Circumstances Beyond the Applicant's Control in Financial Matters
- Importance of Demonstrating a Good-faith Effort to Resolve Debts in Security Clearance Cases.