Summary
A 41-year-old defense contractor was granted a security clearance despite initial concerns under Guideline F (Financial Considerations) due to a history of indebtedness exceeding $40,000 across 17 unpaid debts, ranging from $34 to $18,760. These financial issues were attributed to factors including bad financial management, the dissolution of relationships, expenses related to his mother's passing in 2004, and costs associated with moving. Specific large debts included a co-signed automobile loan for his ex-wife that resulted in repossession and two automobile loans where he fell behind during his first divorce. Additional unplanned expenses arose from his second wife's difficult pregnancy.
To address these concerns, the applicant secured a higher-paying job and took on a part-time job, which enabled him to support his family and address past-due debts. He paid off four debts, made payment arrangements on eight, and was attempting to settle five others, providing substantial documentary proof of these actions. He also enrolled in financial counseling, and his budget reflected a net remainder of $654 per month.
The judge found that the applicant recognized the importance of overcoming his indebtedness and the potential adverse impact on his clearance. He demonstrated a good-faith effort to repay or settle his debts, had successfully held a security clearance since enlisting in the Army, and had an above-average work performance evaluation. Consequently, the security clearance was granted.
Why the applicant prevailed
- The applicant demonstrated a good-faith effort to repay or settle his debts.
- He secured a higher-paying job and took on a part-time job to improve his financial situation.
- The applicant provided substantial documentary proof of payment or settlement of debts.
Conditions referenced
- DC 19(a)raisedInability or Unwillingness to Satisfy Debts
- DC 19(c)raisedA History of Not Meeting Financial Obligations
- MC 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
- MC 20(b)appliedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
- MC 20(c)appliedThe Person Has Received Counseling or Is Receiving Counseling for the Problem
Key rule quoted
“"The Administrative Judge [considers] the record evidence as a whole, both favorable and unfavorable, evaluate[s] Applicant’s past and current circumstances in light of pertinent provisions of the Directive, and decide[s] whether Applicant ha[s] met his burden of persuasion under Directive ¶ E3.1.15."”
Procedural posture
- SOR issuedMar 6, 2007
- Answer filedApr 7, 2007notarized response
- Hearing heldJul 11, 2007
- Decision dateSep 14, 2007
Cite for
- Good-faith Efforts to Resolve Financial Issues Under Guideline F
- Impact of Personal Circumstances on Financial Obligations
- Importance of Demonstrating Financial Stability for Security Clearance Eligibility