Summary
A 44-year-old former military member and current defense contractor was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The applicant's financial history included delinquent debts accumulated during an overseas deployment and following a divorce.
The Statement of Reasons detailed numerous financial obligations, including an IRS federal tax lien, various telephone and cable bills, a home mortgage, and several other liens and credit card debts. Many of these debts, such as the cable and telephone bills, property tax liens, and some credit card debts, were paid in full. Other significant debts, including a mortgage and several fee simple liens, were brought current. A Chapter 13 bankruptcy filing was dismissed, but many debts were included within it. Several debts were identified as belonging to his wife, incurred either prior to or during their marriage, and were either current or paid by her.
The applicant successfully mitigated the concerns by demonstrating that the majority of his delinquent debts were either paid or brought current. He also showed a proactive approach to managing his finances, indicating that his financial issues were largely resolved and unlikely to recur. As a result, his security clearance was GRANTED.
Why the Applicant Prevailed
- The applicant has paid or brought current the majority of his delinquent debts.
- The applicant demonstrated a proactive approach to managing his finances after taking control of them.
- The applicant's financial issues were largely resolved and unlikely to recur.
Conditions Referenced
- F.19(a)raisedInability or Unwillingness to Satisfy Debts
- F.19(c)raisedA History of Not Meeting Financial Obligations
- F.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
- F.20(c)appliedThe Person Has Received or Is Receiving Counseling for the Problem And/or There Are Clear Indications That the Problem Is Being Resolved or Is Under Control
- F.20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
Key Rule Quoted
“A person’s relationship with her creditors is a private matter until evidence is uncovered demonstrating an inability or unwillingness to repay debts under agreed upon terms.”
Procedural Posture
- SOR issuedMay 2, 2007
- Answer filedJun 11, 2007
- Hearing heldSep 20, 2007
- Decision dateDec 13, 2007
Cite For
- Mitigation of Financial Issues Under Guideline F
- Proactive Financial Management as a Mitigating Factor
- Resolution of Debts as a Basis for Granting Security Clearance