Summary
The applicant, a 36-year-old female, sought a security clearance under Guideline F concerning financial considerations. She had 11 delinquent debts totaling $27,865, primarily attributed to her former husband's financial irresponsibility. The judge found that the applicant had made significant progress in addressing her debts and demonstrated responsible financial management post-divorce, leading to a favorable decision.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: $364.00. This account fell delinquent in April 2004. In her response to the SOR, Applicant promised to pay the debt. She settled the account for $291.00 on October 26, 2008 (AE A) (1.a). $435.00. The account became delinquent in April 2005. Applicant agreed to settle the account in three payments; Applicant provided proof she made two of three scheduled payments on September 26 and October 10, and is scheduled to make the final payment on October 29, 2008 (AE B). The entire settlement is $390.00 (1.b). $390.00. The delinquency date for this account was in April 2005. Applicant settled the account in two payments, September 12, 2008 and September 26, 2008 (AE C) (1.c). $517.00. As noted in her response to the SOR, and at the hearing, Applicant denies this account is her responsibility. She was advised to contact the credit agencies but has not done so (Tr. 49; AE D) (1.d). $497.00. Applicant settled this account for $326.00 on September 26, 2008, and was notified by the collection firm on October 21, 2008 that there was a zero balance on this account (AE E) (1.e). $7,828.00. In February 2005, the creditor reported this account delinquent. On December 17, 2007, Applicant entered in a consent order to pay $150.00 a month until debt is satisfied; she has made nine payments (AE F). She still owes about $6,280.00 (1.f). $9,867.00. In her response to the SOR, Applicant indicated she had not addressed this debt due to the efforts to identify and pay the other creditors. On September 11, 2008, Applicant reached a settlement requiring her to pay this collection firm $250.00 for the first six months, then $500.00 a month until account is paid in full. Applicant made the first $250.00 payment in September 2008 (AE G) (1.g). $2,069.00. Applicant settled this account in full on June 17, 2008 (AE H) (1.h). $439.00. On September 26, 2008, Applicant settled this account for approximately $272.00 (AE I) (1.i). $1,648.00. Applicant has been paying $203.00 on this debt since January 2008, and anticipates the debt will be paid in December 2008 (AE J; Tr. 53-54) (1.j). $3,811.00. To help her nephew get to work faster so he would not have to rely on other people, Applicant provided a secondary signature of responsibility and liability if he were to default on the car payments. After he stopped paying, the creditor sought payment directly from her (Tr. 56). On September 8, 2008, Applicant agreed to pay $100.00 in September and October, and then $197.00 a month in November 2008 until the debt is paid. Accruing interest has increased the debt to approximately $7,000.00 (1.k).
The judge granted the clearance. The government raised disqualifying conditions FC 19.a, FC 19.c. The judge applied mitigating conditions FC 20.a, FC 20.b, FC 20.c, FC 20.d. The decision turned on the following: The applicant demonstrated significant progress in repaying her debts, having settled or made payment arrangements for most of them; The applicant's financial difficulties were largely due to her former husband's inability to maintain employment, which was beyond her control; The applicant's credible testimony and character evidence supported her reliability and trustworthiness.
Why the Applicant Prevailed
- The applicant demonstrated significant progress in repaying her debts, having settled or made payment arrangements for most of them.
- The applicant's financial difficulties were largely due to her former husband's inability to maintain employment, which was beyond her control.
- The applicant's credible testimony and character evidence supported her reliability and trustworthiness.
Conditions Referenced
- FC 19.araisedInability or Unwillingness to Satisfy Debts
- FC 19.craisedA History of Not Meeting Financial Obligations
- FC 20.aappliedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
- FC 20.bappliedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control and Individual Acted Responsibly Under the Circumstances
- FC 20.cappliedThe 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
- FC 20.dappliedThe Individual Initiated a Good-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 issuedJul 30, 2008
- Answer filedAug 13, 2008
- Hearing heldOct 28, 2008
- Decision dateFeb 6, 2009
Cite For
- Mitigation of Financial Issues Under Guideline F Due to Personal Circumstances
- Significant Progress in Debt Repayment as a Factor in Security Clearance Decisions
- The Impact of Personal Relationships on Financial Stability and Responsibility