Summary
A 43-year-old payroll clerk was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The Statement of Reasons detailed several financial issues, including $21,202 in mortgage arrearage payments on her home, which was the eleventh listed debt. She resolved this by selling her home for $96,000 in December 2015 via a lender-approved short sale, with the first mortgage paid off for $76,540 after settlement charges.
Additionally, the applicant owed $14,235 across 20 delinquent medical and credit card debts, with the earliest delinquency dating back to 2012. In July 2015, she filed for Chapter 7 bankruptcy jointly with her husband, listing $18,680.70 in Schedule F liabilities, with total liabilities of $151,385.93 and assets of $126,412. The Bankruptcy Court discharged her on February 10, 2016.
The judge determined that the applicant's financial difficulties were largely beyond her control, stemming from job changes and income loss. She demonstrated responsible actions by resolving her mortgage debt through a short sale and having her other debts discharged in bankruptcy. These mitigating factors led to the decision to grant her security clearance.
Why the Applicant Prevailed
- The applicant demonstrated that her financial difficulties were largely due to circumstances beyond her control, including job changes and income loss.
- She successfully resolved her mortgage debt through a lender-approved short sale.
- The applicant's debts were discharged in a Chapter 7 bankruptcy, showing responsible financial management.
Conditions Referenced
- F.1.araisedInability or Unwillingness to Satisfy Debts
- F.1.craisedA History of Not Meeting Financial Obligations
- F.20.bappliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
- F.20.cappliedThe 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
- F.20.dappliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedDec 13, 2015
- Answer filedJan 8, 2016Applicant requested decision on written record.
- Hearing held—No hearing; case decided on written record.
- Decision dateOct 13, 2016
Cite For
- Mitigation of Financial Issues Under Guideline F Due to Circumstances Beyond Control
- Resolution of Debts Through Bankruptcy as a Mitigating Factor
- Good Faith Efforts to Address Financial Obligations