Summary
This case concerns a 42-year-old engineer whose security clearance was initially questioned under Guideline F (Financial Considerations) due to a history of financial difficulties. The Statement of Reasons cited a 1998 bankruptcy discharge, outstanding federal income tax debt of $44,498 for tax years 2000 and 2001, and child support arrearages owed to both State A and State B Divisions of Child Support Enforcement. Additionally, the applicant owed $1,228 to an oil company and $5,055 to Ford Motor Company. Other debts included a credit union debt discharged in his 1998 bankruptcy, paid medical debt, a disputed debt to Palisades/AT&T, and a paid debt to CBCS.
Disqualifying conditions under Guideline F were raised, specifically AG ¶ 19a and AG ¶ 19c. However, the judge applied mitigating conditions AG ¶ 20b, AG ¶ 20c, and AG ¶ 20d.
The clearance was granted because the applicant demonstrated consistent child support payments despite his financial challenges. He also established payment plans for his larger debts and successfully paid off several smaller obligations. The judge determined that many of the applicant's financial issues stemmed from circumstances beyond his control, including periods of unemployment, and that he had sufficiently mitigated the security concerns.
Why the Applicant Prevailed
- The applicant consistently paid child support despite financial difficulties.
- He established payment plans for larger debts and paid off several smaller debts.
- The applicant's financial issues were largely due to circumstances beyond his control, including unemployment.
Conditions Referenced
- AG ¶ 19araisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19craisedA History of Not Meeting Financial Obligations
- AG ¶ 20bappliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
- AG ¶ 20cappliedThe Person Has Received or Is Receiving Counseling for the Problem And/or There Are Clear Indications That the Problem Is Being Resolved or Is Under Control
- AG ¶ 20dappliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
Key Rule Quoted
“A security clearance decision is intended only to resolve the questions of whether it is clearly consistent with the national interest for an Applicant to either receive or continue to have access to classified information.”
Procedural Posture
- SOR issuedJul 10, 2008
- Answer filedAug 27, 2008signed and notarized
- Hearing heldNov 13, 2008
- Decision dateDec 11, 2008
Cite For
- Mitigation of Financial Issues Under Guideline F
- Responsible Financial Behavior Despite Significant Debt
- Impact of Unemployment on Financial Obligations