Summary
A 45-year-old material and process test engineer sought to retain his security clearance under Guideline F, Financial Considerations. The Statement of Reasons (SOR) alleged 19 separate debts, ranging from a $49 utility bill to a $16,335 credit card judgment. The applicant admitted to 18 of these debts, attributing his financial difficulties primarily to his wife losing her job in 2006, which reduced their household income. His wife also submitted a notarized letter dated February 27, 2015, admitting to sabotaging his finances.
The applicant demonstrated significant efforts to address his financial issues, resolving 18 of the 19 alleged debts. He disputed the remaining debt, a $435 collection account from a local government, providing a reasonable basis for his denial. Although there was no record of financial counseling, the judge noted the applicant's 24 years of service with a defense contractor and his pride in his work.
The judge found that the applicant's financial difficulties were largely due to circumstances beyond his control, specifically his wife's job loss and subsequent separation. Given his good-faith efforts to resolve the majority of his debts and his reasonable dispute of the remaining one, the judge concluded that the applicant had regained financial responsibility. Consequently, the applicant's security clearance was GRANTED.
Why the Applicant Prevailed
- The applicant resolved 18 of 19 debts, demonstrating a good-faith effort to regain financial responsibility.
- The applicant's financial difficulties were largely attributed to his wife's job loss and subsequent separation.
- The applicant provided documentation disputing the legitimacy of the remaining debt.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
- AG ¶ 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
- AG ¶ 20(e)appliedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due Debt
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the adjudicative guidelines.”
Procedural Posture
- SOR issuedJan 21, 2015
- Answer filedFeb 27, 2015Applicant elected to have the case decided on the written record.
- Hearing held—No hearing; decision made on the written record.
- Decision dateFeb 17, 2016
Cite For
- Mitigation of Financial Issues Under Guideline F
- Good-faith Efforts to Resolve Debts
- Impact of Personal Circumstances on Financial Responsibility