Summary
The applicant, a 56-year-old materials management analyst with a history of financial difficulties, sought to retain his security clearance under Guideline F. He had previously filed for bankruptcy in 1996 and accumulated several debts totaling $20,528. The judge found that the applicant had made significant efforts to resolve his debts and demonstrated financial responsibility, ultimately granting his security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant filed for Chapter 7 bankruptcy in October 1995 and was awarded a discharge in February 1996 (1.a). Charged-off credit card account for $2,552 (1.b). Charged-off credit card account for $3,975 (1.c). Charged-off credit card account for $1,698 (1.g).
The judge granted the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(d). The decision turned on the following: The applicant admitted all allegations and provided explanations for his financial difficulties; He demonstrated a good-faith effort to repay or resolve all debts alleged in the SOR; The applicant's financial situation showed improvement, and he maintained a modest lifestyle within his means.
Why the Applicant Prevailed
- The applicant admitted all allegations and provided explanations for his financial difficulties.
- He demonstrated a good-faith effort to repay or resolve all debts alleged in the SOR.
- The applicant's financial situation showed improvement, and he maintained a modest lifestyle within his means.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)appliedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
- AG ¶ 20(b)appliedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
- AG ¶ 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
Key Rule Quoted
“The ultimate determination of whether to grant eligibility for a security clearance must be an overall commonsense judgment based upon careful consideration of the guidelines and the whole-person concept.”
Procedural Posture
- SOR issuedSep 9, 2009
- Answer filedSep 29, 2009
- Hearing heldJan 28, 2010
- Decision dateFeb 12, 2010
Cite For
- Mitigation of Financial Issues Under Guideline F
- Good-faith Efforts to Resolve Debts
- Whole-person Concept in Security Clearance Evaluations