Summary
This case concerns a 37-year-old test and evaluation engineer who sought to retain his security clearance despite financial difficulties under Guideline F (Financial Considerations). The applicant faced allegations regarding multiple unresolved debts totaling $12,944, including two judgments from 2004 and 2007 for $1,651 and $2,646 respectively, and several charged-off credit card accounts ranging from $908 to $3,347. Other debts included collection accounts for phone, cable, medical bills, and lease penalties, some of which were paid or partially paid.
The applicant's financial issues were primarily attributed to his divorce. Despite the outstanding debts, he demonstrated good faith efforts to resolve them, providing documentation of attempts to settle with creditors and making payments on several accounts. For instance, he paid $30 to creditors for two judgments and $100 for a charged-off credit card account, and $25 for a collection account related to lease penalties. He also presented a viable budget showing a net remainder after expenses.
The judge ultimately granted the security clearance, finding that the applicant had successfully mitigated the government's concerns. The decision highlighted his good faith efforts to address the debts, the extenuating circumstances of his divorce, and his demonstrated financial responsibility through budgeting.
Why the Applicant Prevailed
- The applicant demonstrated good faith efforts to resolve his debts, including documentation of attempts to settle with creditors.
- The financial difficulties were primarily related to his divorce and were largely beyond his control.
- The applicant provided a viable budget showing a net remainder after paying bills, indicating financial responsibility.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)appliedThe Conditions Happened so Long Ago, Were Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
- AG ¶ 20(b)appliedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
- AG ¶ 20(c)appliedThe Person Has Received or Is Receiving Counseling for the Problem
- AG ¶ 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors
- AG ¶ 20(e)appliedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due Debt
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedSep 4, 2008
- Answer filedSep 29, 2008
- Hearing heldDec 3, 2008
- Decision dateDec 30, 2008
Cite For
- Mitigation of Financial Considerations Under Guideline F
- Good Faith Efforts to Resolve Debts
- Impact of Personal Circumstances on Financial Obligations