Summary
The applicant, a 44-year-old management analyst for a defense contractor, faced security concerns under Guideline F due to financial difficulties, including delinquent debts and past bankruptcy filings. The judge found that the applicant had taken responsible actions to address her financial issues, including paying off some debts and restructuring her mortgage, leading to a decision to grant her security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: a judgment for $246 (1.a). debts to medical providers for $58 (1.b). debts to medical providers for $91 (1.c). debts to medical providers for $28 (1.d). debts to medical providers for $29 (1.e). $233 for a credit card (1.f). a telephone debt for $336 (1.g). a mortgage debt past due more than 120 days for $4,698 (1.h). a car debt more than 60 days past due for $1,341 (1.i). a cable debt for $22 (1.j). $322 (1.k). a car repossession debt for $14,651 (1.l). Chapter 13 bankruptcy filings in July 2001 (1.m). Chapter 13 bankruptcy filings in September 2002 (1.n).
The judge granted the clearance. The government raised disqualifying conditions FC DC ¶ 19(a), FC DC ¶ 19(c). The judge applied mitigating conditions FC MC ¶ 20(a), FC MC ¶ 20(b), FC MC ¶ 20(d). The decision turned on the following: The applicant demonstrated a good-faith effort to manage her financial obligations despite significant challenges; She paid off several debts and restructured her mortgage to make it manageable; The financial issues were largely attributed to her husband's failure to meet his obligations after their separation.
Why the Applicant Prevailed
- The applicant demonstrated a good-faith effort to manage her financial obligations despite significant challenges.
- She paid off several debts and restructured her mortgage to make it manageable.
- The financial issues were largely attributed to her husband's failure to meet his obligations after their separation.
Conditions Referenced
- FC DC ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- FC DC ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- FC MC ¶ 20(a)appliedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
- FC MC ¶ 20(b)appliedThe Conditions That Resulted in the Financial Problems Were Largely Beyond the Person’s Control
- FC MC ¶ 20(d)appliedThe Individual Has Initiated a Good-faith Effort to Repay the Overdue Creditors or Otherwise Resolve Debts
Key Rule Quoted
“An applicant is not required to be debt free, but is required to manage her finances in such a way as to meet her financial obligations.”
Procedural Posture
- SOR issuedJun 30, 2009
- Answer filedJul 21, 2009
- Hearing heldOct 22, 2009
- Decision dateJan 12, 2010
Cite For
- Mitigating Financial Difficulties Under Guideline F
- Good-faith Efforts to Resolve Debts
- Impact of Spousal Financial Obligations on Security Clearance Eligibility