Summary
The applicant, a 39-year-old electrical engineer and Lieutenant in the U.S. Navy Reserves, sought a security clearance despite a history of financial difficulties under Guideline F. He admitted to multiple delinquent debts totaling approximately $37,015, primarily due to periods of unemployment and significant medical expenses for his children. The judge found that the applicant had taken responsible steps to manage his debts, including re-entering a debt repayment plan and establishing payment agreements with creditors, ultimately granting his security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: an $8,873 credit card account that was charged off in August 2002 (1.a). a $776 credit account that was charged off in August 2002 (1.b). a $3,223 credit card account that was charged off in July 2005 (1.c). a credit card account that was past due in the approximate amount of $428 (1.d). a $19,139 credit card account that was placed for collection in October 2004 (1.e). a $1,437 charged off credit card account that was charged off as a bad debt in July 2006 (1.f). a $2,660 credit card account placed for collection in July 2003 (1.g). a $282 phone account that was placed for collection in December 2005 (1.h). a $168 phone account that was past due in July 2006 (1.i). a $29 pediatric medical account placed for collection (1.j).
The judge granted the clearance. The government raised disqualifying conditions FC DC 19(a), FC DC 19(c), FC DC 19(e). The judge applied mitigating conditions FC MC 20(b), FC MC 20(c), FC MC 20(d). The decision turned on the following: The applicant demonstrated a good-faith effort to repay overdue creditors and resolve debts; He provided evidence of financial counseling and a structured repayment plan; The applicant's financial situation stabilized, and he was current on his federal taxes.
Why the applicant prevailed
- The applicant demonstrated a good-faith effort to repay overdue creditors and resolve debts.
- He provided evidence of financial counseling and a structured repayment plan.
- The applicant's financial situation stabilized, and he was current on his federal taxes.
Conditions referenced
- FC DC 19(a)raisedInability or Unwillingness to Satisfy Debts
- FC DC 19(c)raisedHistory of Not Meeting Financial Obligations
- FC DC 19(e)raisedConsistent Spending Beyond One’s Means
- FC MC 20(b)appliedConditions Largely Beyond the Person's Control
- FC MC 20(c)appliedReceived Counseling and Indications of Problem Resolution
- FC MC 20(d)appliedInitiated Good-faith Effort to Repay Creditors
Key rule quoted
“The protection of the national security is the paramount consideration.”
Procedural posture
- SOR issuedJun 20, 2008
- Answer filedJul 26, 2008
- Hearing heldSep 11, 2008
- Decision dateOct 23, 2008
Cite for
- Good-faith Effort to Repay Debts Under Guideline F
- Mitigating Conditions for Financial Difficulties
- Whole Person Concept in Security Clearance Evaluations