Summary
A 55-year-old applicant with a Ph.D. was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The Statement of Reasons (SOR) cited 26 delinquent debts, primarily from unpaid medical bills, along with an unpaid mortgage balance of $10,663, including late fees and one month's payment, and a $106,114 mortgage on a rental property. Other debts included a $566 cell phone bill, a $409 internet bill, a $100 retail store debt, a $729 gas bill, and a $3,033 car loan.
The applicant successfully resolved 23 of the 26 listed debts. The $106,114 mortgage on the rental home was resolved through a short sale in December 2015. The $566 cell phone debt and $409 internet debt were disputed and removed from her credit report. Multiple medical debts owed to creditors C.C.1 and C.F.2 were paid, as were the $100 retail store debt in April 2016, the $729 gas bill in April 2016, and the $3,033 car loan, which was settled and paid in February 2015. She is actively resolving the remaining $10,663 mortgage balance, having negotiated a smaller monthly payment and making larger payments to address the arrears.
The decision to grant the clearance was based on the applicant's demonstrated good-faith effort to resolve her financial issues, including providing evidence of a workable budget and stable income. Her proactive measures to monitor her credit and her credibility also contributed to the favorable outcome.
Why the applicant prevailed
- The applicant resolved 23 of the 26 debts listed in the SOR, demonstrating a good-faith effort to address her financial issues.
- She provided evidence of a workable budget and a stable income, indicating her financial situation is under control.
- The applicant's credibility and proactive measures to monitor her credit contributed to the judge's favorable decision.
Conditions referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 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
- 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 Which Is the Cause of the Problem
Key rule quoted
“The protection of the national security is the paramount consideration.”
Procedural posture
- SOR issuedDec 7, 2015
- Answer filedDec 29, 2015
- Hearing heldApr 8, 2016
- Decision dateAug 2, 2016
Cite for
- Mitigation of Financial Issues Under Guideline F
- Good-faith Efforts to Resolve Debts
- Consideration of the Whole-person Concept in Security Clearance Decisions