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Summary

The applicant, a 57-year-old divorced woman with two adult children, sought a security clearance under Guideline F due to financial considerations. Despite a history of excessive financial indebtedness caused by life circumstances, the applicant demonstrated a good-faith effort to resolve her debts and established a financial plan for repayment. The judge found that the applicant's financial issues were largely beyond her control and that she had taken responsible actions to mitigate the concerns, ultimately granting her security clearance.

Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: A delinquent medical bill was placed for collection in the approximate amount of amount of $105. Applicant paid the debt on February 16, 2016. She has attached the receipt to verify payment (1.a). Two delinquent credit card bills owed to the same bank were charged off in the amounts of $3,197, and $3,251. On February 12, 2016, Applicant entered into a monthly payment agreement to cover both debts that requires she make a payment of $650 that day, and then for six months following she makes a payment of $200 each month (1.b). A delinquent debt owed to a creditor was placed for collection in the approximate amount of $6,571. Applicant states that the debt was originally held by Home Depot where she purchased two air conditioning units at a previous residence. The debt remains owing (1.c). A delinquent credit card debt was placed for collection in the approximate amount of $3,085. Applicant states that this was used for multiple car repairs made between 2002 and 2016. On February 16, 2016, a payment agreement of $155 per month for 18 months was set up on line with the collection agency (1.d). A delinquent debt owed to Sears was placed for collection in the approximate amount of $1,107. Applicant explained that this was used to purchase various necessities for her family and household maintenance. She planned to begin payments no later than May 16, 2016, after paying her income tax that she owes (1.e). Two delinquent credit card bills owed to the same bank were charged off in the amounts of $3,197, and $3,251. On February 12, 2016, Applicant entered into a monthly payment agreement to cover both debts that requires she make a payment of $650 that day, and then for six months following she makes a payment of $200 each month (1.f).

The judge granted the clearance. The government raised disqualifying conditions 19(a), 19(c). The judge applied mitigating conditions 20(b), 20(c), 20(d). The decision turned on the following: The applicant demonstrated a good-faith effort to repay overdue creditors and resolve debts; The financial issues were largely due to circumstances beyond the applicant's control, including divorce and unexpected expenses; The applicant provided substantial evidence of financial rehabilitation, including payment plans and receipts.

Why the Applicant Prevailed

• The applicant demonstrated a good-faith effort to repay overdue creditors and resolve debts.
• The financial issues were largely due to circumstances beyond the applicant's control, including divorce and unexpected expenses.
• The applicant provided substantial evidence of financial rehabilitation, including payment plans and receipts.

Conditions Referenced

Key Rule Quoted

“The adjudicative process is an examination of a sufficient period of a person’s life to make an affirmative determination that the person is an acceptable security risk.”

Procedural Posture

• SOR issuedFeb 4, 2016
• Answer filedFeb 17, 2016Applicant elected to have the case determined on a written record.
• Hearing held—No hearing; case determined on written record.
• Decision dateMar 28, 2017

Cite For

• Mitigating Conditions for Financial Considerations Under Guideline F
• Good-faith Efforts to Resolve Financial Issues
• Impact of Personal Circumstances on Financial Stability