Summary
The applicant, a 53-year-old defense contractor and former U.S. Army service member, faced security concerns under Guideline F due to significant financial issues, including approximately $1,172,651 in delinquent debts and a prior Chapter 7 bankruptcy. The judge granted the security clearance, finding that the applicant had taken responsible steps to address his financial problems, including enrolling in a debt repayment plan and demonstrating a stable income.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: $84,916 equity loan for primary residence in State B (1.a). $7,391 delinquent credit card account (1.b). $3,872 delinquent credit card account (1.c). $3,872 delinquent credit card account (duplicate of 1.l) (1.d). $288 unpaid electrical bill (1.e). $112,334 delinquent mortgage (resolved through quit claim) (1.f). $479,900 consolidated mortgage (duplicate of 1.a and 1.h) (1.g). $340,000 first mortgage (duplicate of 1.a and 1.g) (1.h). $137,837 delinquent mortgage (foreclosed) (1.i). $1,105 homeowners association dues (civil judgment) (1.j). $338 unpaid medical bill (1.k). $3,872 delinquent credit card account (duplicate of 1.b) (1.l). Discharged debts through Chapter 7 bankruptcy petition in 1997 (1.m).
The judge granted the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d). The decision turned on the following: The applicant demonstrated a good-faith effort to resolve his financial obligations through a debt repayment plan; He provided evidence of a stable income and positive cash flow after securing employment; The applicant's financial issues were largely due to circumstances beyond his control, including the recoupment of his disability severance pay.
Why the Applicant Prevailed
- The applicant demonstrated a good-faith effort to resolve his financial obligations through a debt repayment plan.
- He provided evidence of a stable income and positive cash flow after securing employment.
- The applicant's financial issues were largely due to circumstances beyond his control, including the recoupment of his disability severance pay.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)appliedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
- AG ¶ 20(c)appliedThe 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
- AG ¶ 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
Key Rule Quoted
“A security clearance decision is intended to resolve whether it is clearly consistent with the national interest for an applicant to either receive or continue to have access to classified information.”
Procedural Posture
- SOR issuedDec 10, 2009
- Answer filed—
- Hearing heldFeb 24, 2010
- Decision dateJun 18, 2010
Cite For
- Mitigating Conditions for Financial Considerations Under Guideline F
- Impact of Uncontrollable Circumstances on Financial Obligations
- Good-faith Efforts in Debt Repayment Plans