Summary
A 42-year-old naturalized U.S. citizen, originally from Russia, working as an acquisitions program analyst, was granted a security clearance despite concerns under Guideline F (Financial Considerations). The applicant's financial difficulties stemmed primarily from the economic downturn, which led to her defaulting on most mortgages and falling behind on credit card payments in late 2008. She and her husband incurred repair expenses on rental properties after tenant evictions and accumulated significant credit card debt.
After unsuccessful attempts to renegotiate debts, the couple filed for bankruptcy on March 4, 2010, which was discharged on June 17, 2010. They reaffirmed mortgage debt on their personal residence and two personal loans, maintaining timely payments for the past two years. The applicant completed a required financial management course and sought professional financial and legal assistance. Their financial advisor attributed the problems to the economic downturn and a decrease in the husband's construction work.
The judge found that the applicant mitigated the financial concerns. This decision was based on her demonstrated responsible financial management before 2008, her proactive efforts to seek professional financial advice, and the determination that her financial issues were largely due to circumstances beyond her control, such as the recession. The applicant and her husband now have sufficient income to cover their monthly expenses and do not live extravagantly.
Why the Applicant Prevailed
- The applicant demonstrated responsible financial management prior to the economic downturn.
- The applicant and her husband sought professional financial advice and filed for bankruptcy when necessary.
- The applicant's financial issues were largely due to circumstances beyond her control, such as the recession.
Conditions Referenced
- F.19(a)raisedInability or Unwillingness to Satisfy Debts
- F.19(c)raisedA History of Not Meeting Financial Obligations
- F.20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
- F.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
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedSep 25, 2009
- Answer filedOct 19, 2009
- Hearing heldMay 27, 2010DOHA reassigned the case to a new judge on April 20, 2010.
- Decision dateSep 27, 2010
Cite For
- Mitigation of Financial Issues Due to Economic Downturn Under Guideline F
- Responsible Financial Management Prior to Economic Hardship
- Impact of Bankruptcy on Security Clearance Eligibility