Summary
The applicant, a 45-year-old federal contractor with a history of financial difficulties, successfully mitigated security concerns under Guideline F related to financial considerations. The applicant had delinquent debts totaling approximately $71,037, including a Chapter 13 bankruptcy that was reinstated and completed, resulting in debt discharge. The judge found that the applicant demonstrated a good-faith effort to resolve her debts, leading to a favorable decision for security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: This is a mortgage account in the amount of $50,150 (1.a). This is a car loan debt in the amount of $4,584 (1.b). This is a medical debt in the amount of $350 (1.c). This is a medical debt in the amount of $147 (1.d). This debt is being resolved (1.e). The Chapter 13 bankruptcy was reinstated and Applicant made all required payments under the approved plan (1.f). This is a telecommunications debt in the amount of $94 (1.g). These are consumer debts in the amounts of $927 (1.h). These are consumer debts in the amounts of $578 (1.i).
The judge granted the clearance. The government raised disqualifying conditions F.1.a, F.1.c. The judge applied mitigating conditions F.2.c, F.2.d. The decision turned on the following: The applicant completed a Chapter 13 bankruptcy and had her debts discharged; The applicant resolved or is resolving all delinquent debts, demonstrating good-faith efforts; The applicant is current on her student loan debt and has established a track record of addressing her financial issues.
Why the Applicant Prevailed
- The applicant completed a Chapter 13 bankruptcy and had her debts discharged.
- The applicant resolved or is resolving all delinquent debts, demonstrating good-faith efforts.
- The applicant is current on her student loan debt and has established a track record of addressing her financial issues.
Conditions Referenced
- F.1.araisedInability or Unwillingness to Satisfy Debts
- F.1.craisedA History of Not Meeting Financial Obligations
- F.2.cappliedThe 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.2.dappliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedJul 30, 2015
- Answer filedNov 23, 2015
- Hearing held—Decided on the written record without a hearing.
- Decision dateSep 2, 2016
Cite For
- Mitigation of Financial Considerations Under Guideline F
- Good-faith Efforts to Resolve Debts
- Successful Completion of Chapter 13 Bankruptcy as a Mitigating Factor