Summary
A 43-year-old engineering designer was granted a security clearance despite concerns under Guideline F (Financial Considerations). The Statement of Reasons (SOR) detailed a history of financial difficulties, including a Chapter 7 bankruptcy filing in January 1992, discharged in May 1992, and a second Chapter 7 filing in February 2000, discharged in July 2000. Additionally, the SOR noted a Chapter 13 bankruptcy petition filed in May 2006 and two past-due debts totaling $583 and $8,935.
Disqualifying conditions related to these financial issues were raised. However, the judge applied several mitigating conditions, finding that the applicant had demonstrated a significant change in financial behavior and responsibility.
The applicant completed the Chapter 13 bankruptcy repayment plan in June 2009 and has since maintained all current financial obligations. Positive character references from coworkers and supervisors further supported the applicant's reliability and trustworthiness. Based on this demonstrated financial responsibility since 2009, the security clearance was granted.
Why the Applicant Prevailed
- The applicant completed a Chapter 13 bankruptcy repayment plan in June 2009 and is current on all financial obligations.
- The applicant demonstrated a change in financial behavior and responsibility since May 2006.
- Positive character references from coworkers and supervisors supported the applicant's reliability and trustworthiness.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(b)raisedIndebtedness Caused by Frivolous or Irresponsible Spending
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 19(e)raisedConsistent Spending Beyond One's Means
- AG ¶ 20(a)appliedBehavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlThe applicant's financial issues were partly due to irresponsible decisions.
- AG ¶ 20(c)appliedReceived or Is Receiving Counseling for the Problem And/or There Are Clear Indications That the Problem Is Being Resolved or Is Under Control
- AG ¶ 20(d)appliedInitiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant's compliance with the Chapter 13 repayment plan demonstrates good faith.
- AG ¶ 20(e)rejectedReasonable Basis to Dispute the Legitimacy of the Past-due DebtThe applicant did not dispute the underlying debts.
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the AG.”
Procedural Posture
- SOR issuedMar 30, 2010
- Answer filedApr 12, 2010
- Hearing heldSep 21, 2010
- Decision dateOct 29, 2010
Cite For
- Mitigation of Financial Issues Under Guideline F Due to Demonstrated Financial Responsibility
- Impact of Character References on Security Clearance Decisions
- Consideration of the Whole-person Concept in Security Clearance Evaluations