Summary
The applicant, a 45-year-old defense contractor employee, faced security concerns under Guideline F due to approximately $28,000 in delinquent debts primarily resulting from medical expenses and unemployment. The judge found that the applicant had taken significant steps to manage her financial situation, including a recent promotion and a positive cash flow, leading to a decision to grant her security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Medical bill of $164 from one of the surgeries on which there has been no payment (1.a). Visa charge of $1,485 for repair for her husband’s auto. Payment plan has been established. The debt is being paid with $198 monthly payments and will be fully paid in the next 60 days (1.b). Medical bill of $604 is one of three bills from her hospitalization for surgery that she intends to pay (1.c). Medical bill of $971 is the second of the bills from surgery (1.d). Medical bill of $137 is the third of the bills from surgeries (1.e). Visa credit card debt of $13,200 on a card that her sister named her as an authorized user when she was unemployed after her surgeries. The accumulated debt was approximately $8,000 and the additional amount is for interest and charges. Applicant charged approximately $4,000 on the card and has offered without success to pay her sister that amount since she believes the balance is for her sister’s debts, and her sister’s daughter’s debts. Applicant made the last payment to be made on the account in 2006 of $500. She has been in contact with the creditor about resolving the matter but without resolution since the company insisted on full payment. Her mother has become involved in the issue, and expressed a willingness to either help pay the debt or try to resolve the conflict between the two sisters. Applicant recognizes that she may have to pay the full amount and will do so if necessary (1.f). Although Applicant accepted responsibility for all the SOR debts, this debt for $62 is unknown to Applicant (1.g). Medical bill of $197 for emergency room services for Applicant’s husband which is not paid (1.h). Medical clinic bill for $29 that she believes is her son’s bill (1.i). Direct TV bill of $196 which she will pay with increased income (1.j). Quest Communications bill for $186 will be paid with increased monthly income (1.k). Cash advance amount of $307 to supplement income when unemployed will be paid with increased monthly income (1.l). Auto loan of $10,500 on 2003 Oldsmobile became delinquent but she has paid the delinquency and, for several months has been paying $499 per month which is $100 more than the required payment. She now has paid the loan down to $6,500 with a recent payment of $1,000 (1.m). Medical expense of $240 for her husband is not paid (1.n). Auto insurance payment of $91 for her son’s car has been paid (1.o).
The judge granted the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(b), AG ¶ 20(d). The decision turned on the following: The applicant demonstrated a good faith effort to repay overdue creditors and resolve debts; The financial difficulties were largely due to circumstances beyond the applicant's control, including medical issues and unemployment; The applicant's long-standing employment and positive work record supported her reliability and trustworthiness.
Why the applicant prevailed
- The applicant demonstrated a good faith effort to repay overdue creditors and resolve debts.
- The financial difficulties were largely due to circumstances beyond the applicant's control, including medical issues and unemployment.
- The applicant's long-standing employment and positive work record supported her reliability and trustworthiness.
Conditions referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
- AG ¶ 20(d)appliedGood Faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
Key rule quoted
“The protection of the national security is the paramount consideration.”
Procedural posture
- SOR issuedNov 4, 2008
- Answer filedDec 8, 2008
- Hearing heldFeb 19, 2009
- Decision dateApr 16, 2009
Cite for
- Mitigation of Financial Concerns Under Guideline F Due to Medical Issues
- Good Faith Efforts to Resolve Debts Can Lead to Favorable Outcomes
- Importance of the Whole Person Concept in Security Clearance Decisions