Summary
A 56-year-old simulation engineer and combat veteran was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The applicant's financial difficulties stemmed primarily from his wife's illness and other unforeseen circumstances.
Allegations included a house foreclosure in November 2009, which sold at auction in February 2010 for $175,000. Other debts involved a $9,620 judgment from April 2008 for a delinquent credit card, and a November 2009 judgment for $16,467. The applicant contended this $16,467 judgment combined a $6,924 vehicle loan and a $5,051 personal loan, both owed to his mortgage-loan creditor. He also had a credit card with another creditor and paid a $248 cable bill incurred in 2011.
The administrative judge granted the clearance, finding that the applicant's financial issues were largely beyond his control. He demonstrated responsible behavior by communicating with creditors and attempting to negotiate repayment plans. Crucially, the applicant had not incurred any significant delinquent debt since 2008, showing a commitment to financial stability.
Why the Applicant Prevailed
- The applicant's financial difficulties were largely due to circumstances beyond his control, including his wife's illness and unemployment.
- He acted responsibly by maintaining communication with creditors and attempting to negotiate repayment plans.
- The applicant has not incurred any significant delinquent debt since 2008 and has demonstrated a commitment to financial stability.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)appliedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
- AG ¶ 20(b)appliedThe Conditions 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
“A security clearance adjudication is an evaluation of a person’s judgment, reliability, and trustworthiness. It is not a debt-collection procedure.”
Procedural Posture
- SOR issuedAug 1, 2015
- Answer filedAug 18, 2015
- Hearing heldJan 12, 2017
- Decision dateMay 15, 2017
Cite For
- Mitigation of Financial Concerns Under Guideline F Due to Circumstances Beyond Control
- Good Faith Efforts to Resolve Debts and Maintain Financial Stability
- Evaluation of the Whole-person Concept in Security Clearance Determinations