Summary
A 45-year-old single mother and defense contractor was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The Statement of Reasons (SOR) alleged three bankruptcy filings and 18 delinquent debts totaling $12,251. The applicant attributed these financial difficulties to being a single mother to two minor children, numerous periods of unemployment not caused by her, divorce, and a lack of health insurance for herself and her children.
While a Chapter 7 bankruptcy in 2007 was discharged, two Chapter 13 bankruptcies in 2006 and 2013 were dismissed due to her inability to maintain payments during job losses. However, the applicant demonstrated significant mitigation by resolving 12 of the alleged debts, totaling $9,856, through payments, payment plans, or other means. She has also been employed by a defense contractor since November 2015 and is actively working to establish payment plans for her remaining unresolved debts.
The judge found that the applicant's financial problems were largely beyond her control and that her substantial efforts to resolve her debts, coupled with a plan for the remaining ones, mitigated the security concerns. The decision concluded that her financial condition does not adversely reflect on her suitability for a security clearance, and it is clearly consistent with the national interest to grant her eligibility for access to classified information.
Why the Applicant Prevailed
- The applicant resolved $9,856 of her total debts, demonstrating a good-faith effort to address her financial issues.
- The financial problems were largely attributed to circumstances beyond her control, such as periods of unemployment and being a single mother.
- The applicant's remaining medical debt was deemed not to adversely reflect on her suitability for a security clearance.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)appliedConditions Largely Beyond the Person's Control
- AG ¶ 20(d)appliedGood-faith Effort to Repay Debts
Key Rule Quoted
“An applicant is not required to show that every debt in the SOR has been paid. Rather, an applicant is required to demonstrate that he or she has established a plan to resolve his [or her] financial problems and taken significant actions to implement that plan.”
Procedural Posture
- SOR issuedJul 18, 2016
- Answer filedAug 18, 2016
- Hearing heldN/ADecision based on written record without a hearing.
- Decision dateAug 31, 2017Record reopened sua sponte on August 3, 2017.
Cite For
- Mitigating Financial Difficulties Under Guideline F
- Good-faith Efforts to Resolve Debts
- Impact of Personal Circumstances on Financial Responsibility