Summary
The applicant, a 47-year-old Contract Management Professional with an MBA, faced security clearance concerns under Guideline F due to excessive financial indebtedness totaling approximately $115,000. The applicant demonstrated significant efforts to resolve her debts, including hiring a money management counseling agency and making consistent payments. The judge found that the applicant's financial issues were largely due to personal circumstances beyond her control and that she had taken responsible steps to rehabilitate her financial situation, ultimately granting her security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: A delinquent student loan debt was placed for collection in the approximate amount of amount of $33,936. Applicant’s student loan has been transferred to another creditor, and consolidated with another student loan for payment. She has brought them current, and is making a monthly payment of $318 toward the debt (1.a). Another delinquent student loan debt was placed for collection in the approximate amount of $32,661. Applicant’s student loan has been transferred to another creditor and consolidated with another student loan for payment. She has brought them current, and is making a monthly payment of $318 toward the debt (1.b). A delinquent debt owed to a creditor was placed for collection in the approximate amount of $999. This was for two cable boxes that Applicant did not timely return, but she did return them, and the creditor erroneously thought she had not (1.c). A delinquent credit card debt was placed for collection in the approximate amount of $923. Applicant first learned of the debt in April 2016 and settled the account for $630 (1.d). A delinquent debt for cable services was placed for collection in the approximate amount of $259. Applicant first learned of the debt in April 2016 and paid it in full (1.e). A delinquent debt owed to a creditor was placed for collection in the approximate amount of $51. Applicant has resolved the debt in full (1.f). Two delinquent Federal tax lien were entered against the Applicant in June 2006 in the approximate amount of $34,961; and in May 2010 in the approximate amount of $10,091. Applicant explained that this occurred when she prematurely withdrew $35,000 from her retirement account. Applicant has been making payments of $450 monthly through an installment agreement she started in 2002. When she was laid off, she had to stop making payments, which accrued additional cost of penalties and interest. Since 2002, she has only missed three payments due to deaths in her family and her job lay-off. Recently, Applicant was able to sell some mineral rights that she inherited. All of her federal taxes are paid, except for $60. She plans to pay the $60. Both liens have now been released (1.g). A delinquent debt was charged off in the approximate amount of $537. Applicant has resolved the debt (1.i). A delinquent debt owed to a city was charged off in the approximate amount of $98. This was a parking ticket that Applicant was not aware of until she saw her credit report in April 2016. The debt has been resolved (1.j). A delinquent debt was placed for collection in the approximate amount of $278. Applicant contacted the creditor and was told that she does not owe the debt. If at some point it is determined that she does, she will immediately pay it (1.k). A delinquent debt was placed for collection in the approximate amount of $221. Applicant contacted the creditor and was told that she owed the debt. She has paid the debt off (1.l). A delinquent debt was placed for collection in the approximate amount of $178. Applicant has paid the debt off (1.m). A delinquent debt was placed for collection in the approximate amount of $40. Applicant has paid the debt off (1.n). A delinquent debt was placed for collection in the approximate amount of $32. Applicant has tried to find out how to pay the debt but has been unsuccessful. She states that when she finds out who to pay, she will pay the debt (1.o).
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 her financial debts; The financial difficulties were largely due to personal circumstances beyond her control, including caring for terminally ill family members; The applicant's financial situation is now stable, with a consistent income and a budget in place.
Why the Applicant Prevailed
- The applicant demonstrated a good-faith effort to resolve her financial debts.
- The financial difficulties were largely due to personal circumstances beyond her control, including caring for terminally ill family members.
- The applicant's financial situation is now stable, with a consistent income and a budget in place.
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
- 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors
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 issuedMar 24, 2016
- Answer filedApr 8, 2016
- Hearing heldSep 13, 2016record remained open until September 27, 2016
- Decision dateJan 20, 2017
Cite For
- Mitigating Conditions for Financial Considerations Under Guideline F
- Impact of Personal Circumstances on Financial Stability
- Evidence of Financial Rehabilitation and Responsible Behavior