Summary
A 26-year-old male applicant was initially flagged under Guideline F (Financial Considerations) due to delinquent debts totaling $14,652. The Statement of Reasons detailed seven specific debts, including a $6,747 judgment for an automobile loan, a $2,584 credit card debt, and a $3,389 university room and board debt. Other debts included amounts owed to a cell phone company, an insurance company, another credit card company, and a storage company.
The applicant demonstrated significant efforts to resolve these financial issues. Since March 2009, he paid five of the seven outstanding debts. Specifically, he paid the $373 cell phone debt on May 22, 2009; the $78 insurance debt on March 31, 2009; the $775 credit card debt in May 2009; the $3,389 university debt on May 15, 2009; and the $706 storage company debt on March 30, 2009. For the remaining two debts, he was in contact with the university credit union regarding the $6,747 judgment and had made settlement offers to the credit card company for the $2,584 debt.
The judge determined that the applicant had mitigated the financial concerns. This decision was based on his payment of five debts, his demonstrated commitment to resolving his financial issues, and his responsible budget management. The judge concluded that the applicant's financial problems were not likely to recur due to the significant actions taken to implement a debt resolution plan. Consequently, the security clearance was GRANTED.
Why the Applicant Prevailed
- The applicant paid five of the seven debts since March 2009.
- He demonstrated a commitment to resolving his financial issues and managing his budget responsibly.
- The applicant's financial problems were not likely to recur, as he has taken significant actions to implement a plan for debt resolution.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
- AG ¶ 20(c)appliedReceived Counseling or Indications That the Problem Is Being ResolvedThe applicant has taken accounting and finance courses and received financial advice from his father.
- AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue CreditorsThe applicant has paid five debts and is negotiating with creditors.
Key Rule Quoted
“An applicant is not required to show that she has completely paid off her indebtedness, only that she has established a reasonable plan to resolve her debts and has taken significant actions to implement that plan.”
Procedural Posture
- SOR issuedFeb 24, 2009
- Answer filedMar 31, 2009
- Hearing heldJul 9, 2009
- Decision dateJul 30, 2009
Cite For
- Mitigation of Financial Considerations Under Guideline F
- Good-faith Efforts to Resolve Debts
- Whole Person Concept in Security Clearance Evaluations