Summary
The applicant, a 25-year-old Network Device Engineer with a high school diploma and some college education, faced allegations under Guideline F (Financial Considerations) due to approximately $80,000 in delinquent debts. Despite admitting to the financial issues stemming from a divorce and poor spending habits, the applicant demonstrated a good faith effort to resolve her debts, including filing for Chapter 7 bankruptcy. The judge found that the applicant's circumstances were largely beyond her control and that she had taken steps towards financial rehabilitation, ultimately granting her security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: A credit card debt in the amount of $1,642.00, is being paid in monthly installments of $100.00 a month (1.a). A debt owed to a bank in the amount of $51,000.00 is the second mortgage on her house (1.b). A credit card debt owed to a bank in the amount of $4,500.00 is being paid in monthly installments of $50.00 (1.c). A credit card debt owed to a bank in the amount of $5,528.00 remains outstanding (1.d). Two credit card debts owed to a bank in the amount of $6,337.00 and $2,782.00 have a payment plan set up in the amount of $100.00 a month for both accounts (1.e). A debt owed to a University in the amount of $850.00 has been paid in full (1.h). Two student loans owed to a bank in the amounts of $2,614.00 and $4,481.00 have been consolidated (1.i).
The judge granted the clearance. The government raised disqualifying conditions 19(a), 19(c). The judge applied mitigating conditions 20(b), 20(c), 20(d). The decision turned on the following: The applicant demonstrated a good faith effort to resolve her debts, including filing for Chapter 7 bankruptcy; The financial issues were largely due to circumstances beyond her control, such as divorce and separation; The applicant showed evidence of financial rehabilitation and understanding of responsible financial management.
Why the Applicant Prevailed
- The applicant demonstrated a good faith effort to resolve her debts, including filing for Chapter 7 bankruptcy.
- The financial issues were largely due to circumstances beyond her control, such as divorce and separation.
- The applicant showed evidence of financial rehabilitation and understanding of responsible financial management.
Conditions Referenced
- 19(a)raisedInability or Unwillingness to Satisfy Debts
- 19(c)raisedA History of Not Meeting Financial Obligations
- 20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
- 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
- 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
Key Rule Quoted
“The adjudicative process is an examination of a sufficient period of a person’s life to make an affirmative determination that the person is an acceptable security risk.”
Procedural Posture
- SOR issuedFeb 3, 2009
- Answer filedFeb 24, 2009
- Hearing heldApr 29, 2009
- Decision dateMay 27, 2009
Cite For
- Financial Rehabilitation Under Guideline F
- Good Faith Efforts to Resolve Debts
- Impact of Personal Circumstances on Financial Issues