Summary
A 38-year-old electrician for a defense contractor was granted a security clearance despite allegations under Guideline F (Financial Considerations) related to approximately $200,000 in financial indebtedness. The Statement of Reasons detailed eleven specific debts, including two mortgages that were past due. One mortgage had a past due amount of $63,067 with a total balance of $354,849, while another was past due by approximately $5,048 and in foreclosure with a balance of $76,761. Other debts ranged from $25 to $1,419.
Of these eleven debts, five were paid in full, and one was resolved after the applicant was informed it was erroneously reported. Five debts remained outstanding, including amounts of $852, $566, $1,419, and $412, along with the outstanding mortgage balances. The applicant attributed his financial difficulties to unemployment and supporting his partner's family.
Since November 2013, the applicant has been consistently employed and has made substantial progress in resolving his financial issues, paying off seven of the eleven alleged delinquent debts. The judge determined that the financial problems were largely beyond the applicant's control and that he demonstrated a good-faith effort to repay his creditors, without incurring new debts. Consequently, the security clearance was granted.
Why the Applicant Prevailed
- The applicant has made significant progress in resolving his debts, having paid off seven of eleven delinquent debts.
- The financial issues were largely due to circumstances beyond the applicant's control, including unemployment and supporting his partner's family.
- The applicant demonstrated a good-faith effort to repay creditors and has not incurred new debts.
Conditions Referenced
- 19.(a)raisedInability or Unwillingness to Satisfy Debts
- 19.(c)raisedA History of Not Meeting Financial Obligations
- 20.(b)appliedConditions Largely Beyond the Person's Control
- 20.(c)appliedReceiving Counseling or Indications That the Problem Is Being Resolved
- 20.(d)appliedGood-faith Effort to Repay Overdue Creditors
Key Rule Quoted
“The adjudicative process is an examination of a sufficient period of a person’s life to make an affirmative determination that the person is an acceptable security risk.”
Procedural Posture
- SOR issuedSep 2, 2014
- Answer filedJan 16, 2015Applicant elected to have the case determined on a written record.
- Hearing held—No hearing; case determined on written record.
- Decision dateMay 12, 2015
Cite For
- Mitigating Conditions for Financial Considerations Under Guideline F
- Good-faith Efforts to Resolve Debts
- Impact of Circumstances Beyond Control on Financial Issues