Summary
The applicant, a 33-year-old production analyst employed by a defense contractor, faced financial security concerns under Guideline F due to a history of delinquent debts and a Chapter 13 bankruptcy filing. The judge found that the applicant's financial issues stemmed from circumstances beyond her control, including unauthorized use of credit cards and periods of unemployment. The applicant demonstrated responsible management of her finances and a good-faith effort to repay her debts, leading to a decision to grant her security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant filed a Chapter 13 bankruptcy on June 24, 2015 (1.a). a mortgage account past due for $1,688 on a balance of $103,543 (1.b). a delinquent credit card debt charged off for $2,802 (1.c). a medical debt in collection for $2,689 (1.d). a credit card charged off for $1,072 (1.e). two delinquent medical debts for $369 (1.f). two delinquent medical debts for $258 (1.g). a telephone account in collection for $139 (1.h). a television service account in collection for $121 (1.i). an eyeglass account charged off for $116 (1.j). judgments filed on three delinquent homeowner accounts for $537 (1.k). judgments filed on three delinquent homeowner accounts for $1,030 (1.l). judgments filed on three delinquent homeowner accounts for $1,305 (1.m). a judgment on a delinquent credit card account for $2,802 (1.n). a judgment on a store account for $819 (1.o).
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(d). The decision turned on the following: The applicant's financial issues were largely due to circumstances beyond her control, including unauthorized use of credit cards and job loss; She filed a Chapter 13 bankruptcy and is current with payments to the bankruptcy trustee; The applicant prioritized her debts and demonstrated a good-faith effort to repay her creditors.
Why the Applicant Prevailed
- The applicant's financial issues were largely due to circumstances beyond her control, including unauthorized use of credit cards and job loss.
- She filed a Chapter 13 bankruptcy and is current with payments to the bankruptcy trustee.
- The applicant prioritized her debts and demonstrated a good-faith effort to repay her creditors.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)appliedConditions That Resulted in the Financial Problems Were Largely Beyond the Person’s Control
- AG ¶ 20(d)appliedThe Individual Has Initiated a Good-faith Effort to Repay the Overdue Creditors or Otherwise Resolve Debts
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedDec 21, 2015
- Answer filedJan 6, 2016Applicant admitted all allegations.
- Hearing heldOct 26, 2016Hearing convened as scheduled.
- Decision dateDec 27, 2016
Cite For
- Mitigation of Financial Concerns Under Guideline F
- Good-faith Efforts in Debt Repayment
- Impact of Circumstances Beyond Control on Financial Responsibility