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Summary

The applicant, a 54-year-old field engineer and retired U.S. Navy chief petty officer, faced security concerns under Guideline F due to multiple delinquent debts totaling approximately $11,000. The applicant attributed his financial difficulties to family obligations and unexpected circumstances, including the illness and death of family members. The judge found that the applicant had made significant progress in addressing his debts through a credit counseling service and demonstrated responsible behavior, ultimately granting his security clearance.

Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: collection account ($1,734). Being paid through CCS at $174 per month (1.a). medical bill placed for collection ($100). Being paid through CCS at $10 per month (1.b). medical bill placed for collection ($98). Not handled by CCS, because CCS does not handle any debt less than $100. Applicant has taken no action to resolve this debt (1.c). charged off credit union debts ($3,766). Being paid through CCS at $662 per month (1.d). charged off credit union debts ($595). Being paid through CCS at $662 per month (1.e). charged off credit union debts ($2,248). Being paid through CCS at $662 per month (1.f). charged off cellphone bill ($1,071). Being paid through CCS at $127 per month (1.g). charged off credit card account ($1,065). This debt is not resolved. It is ineligible for the CCS plan, because Applicant has another debt to this creditor, which is not yet paid off, but which is being paid in weekly $25 payments by automatic debit (1.h). cable service bill placed for collection ($36). Not handled by CCS. Applicant has not yet taken any action to resolve this debt (1.i). home-improvement store bill placed for collection ($954). Applicant was unable to recognize this debt at the hearing or provide any information about it. However, the original creditor is listed in the CCS plan and the debt is listed as paid in the CCS list and the January 2016 CBR (1.j). medical bill placed for collection ($250). Being paid through CCS at $25 per month (1.k). medical bill placed for collection ($179). Being paid through CCS at $18 per month (1.l). medical bill placed for collection ($114). Being paid through CCS at $12 per month (1.m). medical bills placed for collection ($84). Not handled by CCS. Applicant has taken no action to resolve these debts (1.n). medical bills placed for collection ($72). Not handled by CCS. Applicant has taken no action to resolve these debts (1.o). cable service bill placed for collection ($36). Same debt as SOR ¶ 1.i (1.p).

The judge granted the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d). The decision turned on the following: The applicant demonstrated a good-faith effort to resolve his debts through a credit counseling service; The financial issues were largely due to circumstances beyond the applicant's control, including family health crises; The applicant has made significant progress in managing and repaying his debts since receiving the Statement of Reasons.

Why the Applicant Prevailed

• The applicant demonstrated a good-faith effort to resolve his debts through a credit counseling service.
• The financial issues were largely due to circumstances beyond the applicant's control, including family health crises.
• The applicant has made significant progress in managing and repaying his debts since receiving the Statement of Reasons.

Conditions Referenced

Key Rule Quoted

“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the AG.”

Procedural Posture

• SOR issuedMar 25, 2016Applicant did not receive it until 04/22/2016.
• Answer filedMay 6, 2016
• Hearing heldAug 17, 2016
• Decision dateOct 25, 2016

Cite For

• Mitigating Conditions Under Guideline F for Financial Considerations
• Impact of Family Obligations on Financial Stability
• Good-faith Efforts in Debt Resolution