Summary
A 47-year-old locksmith working for defense contractors was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The Statement of Reasons detailed numerous outstanding debts, including credit card balances, medical bills, and a loan, some dating back to 1998. Specific allegations included admitted debts to Creditor #1 ($412, referred to collections for $839), Creditor #5 ($175 medical), Creditor #6 ($2,832 credit card), Creditor #7 ($2,296 department store), Creditor #8 ($168 medical), Creditor #9 ($195 and $108 medical), and Creditor #10 ($25 medical). The applicant denied debts to Creditor #2 ($195), Creditor #4 ($184), and Creditor #11 ($3,055 loan, though a 2005 report showed it owing). He also disputed a $163 medical debt to Creditor #12.
The applicant demonstrated a good-faith effort to resolve his financial issues. He had made arrangements with Credit Solutions to consolidate several debts, including those to Creditor #6 and Creditor #7, making monthly payments of $115 over a five-to-six-year period. He also completed payment arrangements with Creditor #11 for a $2,735 debt, agreeing to pay $200 monthly starting February 2007. Additionally, he had paid two medical debts of $70 and $139 in August 2006.
The judge found that the applicant had consistently made payments on several large debts since 2006 and had a systematic plan to address his financial issues while living within his means. These mitigating factors outweighed the disqualifying conditions, leading to the decision to grant the security clearance.
Why the applicant prevailed
- The applicant initiated a good-faith effort to repay overdue creditors and resolve debts.
- He has consistently made payments on several large debts since 2006.
- The applicant demonstrated a systematic plan to address his financial issues and lives within his means.
Conditions referenced
- E2.A6.1.2.1raisedHistory of Not Meeting Financial Obligations
- E2.A6.1.2.3raisedInability or Unwillingness to Satisfy Debts
- E2.A6.1.3.1appliedThe Behavior Was Not Recent
- E2.A6.1.3.6appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
Key rule quoted
“In reaching the fair and impartial overall common sense determination, the Administrative Judge may draw only those inferences and conclusions that have a reasonable and logical basis in the evidence of record.”
Procedural posture
- SOR issuedApr 13, 2006
- Answer filedApr 28, 2006Notarized response admitting in part and denying in part allegations.
- Hearing heldFeb 7, 2007Conducted in a city near where the applicant works.
- Decision dateMay 31, 2007
Cite for
- Good-faith Efforts to Resolve Financial Issues Under Guideline F
- Systematic Debt Repayment Plans as Mitigating Factors
- Consideration of Whole Person Factors in Financial Cases