Summary
The applicant, a 39-year-old electrician, faced financial concerns under Guideline F due to debts totaling $25,667, primarily stemming from a divorce and burial expenses. Despite a history of delinquency, the applicant demonstrated efforts to resolve his debts and maintain timely payments, leading to a granted security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Owes a tax lien of $435 filed in May 2005 (1.a). Owes a judgment of $2,965 awarded in September 2001 (1.b). Owes $389 for wireless telephone services (1.c). Owes $13,416 on an installment loan (1.d). Owes $401 on a credit card account as an authorized user (1.e). Owes $4,821 in a credit card balance (1.f). Owes $1,640 on an installment account with a home improvement retailer (1.g). Owes $1,600 for early termination of a lease (1.h).
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), AG ¶ 20(c). The decision turned on the following: The applicant showed a good faith effort to resolve financial issues by retaining a credit restoration company; The applicant's financial situation improved, with no new accounts delinquent over 90 days as of July 2009; The applicant's intent to pay legitimate debts was evidenced by recent payments and ongoing negotiations.
Why the Applicant Prevailed
- The applicant showed a good faith effort to resolve financial issues by retaining a credit restoration company.
- The applicant's financial situation improved, with no new accounts delinquent over 90 days as of July 2009.
- The applicant's intent to pay legitimate debts was evidenced by recent payments and ongoing negotiations.
Conditions Referenced
- AG ¶ 19(a)appliedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)appliedA 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)appliedThe Individual Initiated a Good Faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
- AG ¶ 20(c)appliedThe 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
Key Rule Quoted
“An applicant is not required, as a matter of law, to establish that he has paid off each and every debt listed in the SOR. All that is required is that an applicant demonstrate that he has established a plan to resolve his financial problems and taken significant actions to implement that plan.”
Procedural Posture
- SOR issuedJun 25, 2009
- Answer filedAug 3, 2009
- Decision dateMar 31, 2010
Cite For
- Mitigating Conditions Under Guideline F
- Good Faith Efforts to Resolve Financial Issues
- Whole-person Concept in Financial Cases