Summary
The applicant, a 35-year-old federal contractor with a background in the Navy, faced allegations of financial irresponsibility under Guideline F due to approximately $33,000 in delinquent debts. The judge found that the applicant's financial issues stemmed from an abrupt military discharge and that he had made significant efforts to resolve his debts, ultimately granting him a security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: a mortgage debt for an account that was 120 days overdue in the amount of $24,595 with an outstanding balance of $349,822 (1.a). a delinquent debt owed to a department store for a charged-off account in the amount of $683 (1.b). a delinquent debt owed on a military credit card for an account that was charged off in the amount of $7,086 (1.c). a delinquent debt owed to a creditor for a collection account in the amount of $115 (1.d). a delinquent debt owed to a creditor for a collection account in the amount of $314 (1.e). a delinquent debt owed to a creditor for a collection account in the amount of $228 (1.f). a delinquent debt owed to a creditor for a collection account in the amount of $22 (1.g). a delinquent debt owed to a creditor for a collection account in the amount of $546 (1.h).
The judge granted the clearance. The government raised disqualifying conditions 19.(a), 19.(c). The judge applied mitigating conditions 20.(b), 20.(c), 20.(d). The decision turned on the following: The applicant demonstrated a good-faith effort to resolve his delinquent debts; The financial issues were largely due to circumstances beyond the applicant's control, specifically his abrupt military discharge; The applicant has shown financial responsibility since obtaining employment and has paid off most of his debts.
Why the Applicant Prevailed
- The applicant demonstrated a good-faith effort to resolve his delinquent debts.
- The financial issues were largely due to circumstances beyond the applicant's control, specifically his abrupt military discharge.
- The applicant has shown financial responsibility since obtaining employment and has paid off most of his debts.
Conditions Referenced
- 19.(a)raisedInability or Unwillingness to Satisfy Debts
- 19.(c)raisedA History of Not Meeting Financial Obligations
- 20.(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
- 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
- 20.(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
Key Rule Quoted
“The adjudicative process is an examination of a sufficient period of a person’s life to make an affirmative determination that the person is an acceptable security risk.”
Procedural Posture
- SOR issuedNov 18, 2015
- Answer filedDec 8, 2015
- Hearing heldApr 28, 2016
- Decision dateJul 8, 2016
Cite For
- Mitigation of Financial Issues Due to Abrupt Employment Loss
- Good-faith Efforts in Debt Resolution
- Whole-person Assessment in Security Clearance Decisions