Summary
The applicant, a 29-year-old administrative contractor, faced security concerns under Guideline F due to over $31,000 in charged-off accounts and debts. Despite this, she demonstrated financial responsibility by making payments on her student loan and other debts, and she was actively working to settle her remaining obligations. The judge found that the applicant mitigated the financial concerns, leading to a granted security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant had three charged off accounts ($324) with a telephone provider (1.a). Applicant had three charged off accounts ($109) with a telephone provider (1.b). Applicant had three charged off accounts ($126) with a telephone provider (1.c). Applicant owes $23,158 on her student loan (1.d). Applicant's car was repossessed, with a remaining debt of $7,183 (1.e). Applicant was indebted ($956) on a credit card account placed for collection (1.f).
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(c), AG ¶ 20(d). The decision turned on the following: The applicant is making regular payments on her student loan and other debts, demonstrating financial responsibility; She has taken steps to settle her car debt and has established payment plans for her other obligations; The applicant's financial difficulties were largely due to circumstances beyond her control, including job loss and divorce.
Why the Applicant Prevailed
- The applicant is making regular payments on her student loan and other debts, demonstrating financial responsibility.
- She has taken steps to settle her car debt and has established payment plans for her other obligations.
- The applicant's financial difficulties were largely due to circumstances beyond her control, including job loss and divorce.
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(c)appliedThe Person Has Received or Is Receiving Counseling for the Problem
- AG ¶ 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
Key Rule Quoted
“An applicant is not required to be debt-free, but is required to manage her finances so as to meet her financial obligations.”
Procedural Posture
- SOR issuedApr 16, 2009
- Answer filedJun 8, 2009
- Hearing heldSep 2, 2009
- Decision date—
Cite For
- Mitigating Financial Difficulties Under Guideline F Due to Circumstances Beyond Control
- Good-faith Efforts to Repay Debts
- Establishing a Reasonable Plan for Debt Repayment