Summary
A 35-year-old engineer and veteran was granted a security clearance despite financial considerations under Guideline F. The applicant admitted to 12 delinquent debts totaling $47,783, along with first and second mortgages in foreclosure with balances of $216,000 and $49,880, respectively. He stopped paying his mortgages in August 2008 and reported delinquencies of $4,277 on his first mortgage and $443 on his second mortgage to his security officer in September 2008.
The financial difficulties stemmed from a divorce, which involved legal expenses, child support payments of $1,225 per month (which he is current on), and the costs of maintaining separate households for his three children. He also used his savings and a 401(k) loan to help establish his ex-wife and children in a new household.
Despite not receiving formal counseling, the applicant educated himself on financial matters and decided to address all debts through a Chapter 13 bankruptcy petition. He has retained an attorney for this purpose and is not accruing new delinquent debt, living within his means. The decision to grant the clearance was based on the financial issues being largely due to circumstances beyond his control, his proactive steps to resolve the debt, and his outstanding job performance and professional reliability.
Why the Applicant Prevailed
- The applicant's financial issues were attributed to circumstances beyond his control, such as divorce and child support obligations.
- He has taken steps to address his financial situation by planning to file for Chapter 13 bankruptcy and has not incurred new debts.
- The applicant's job performance has been outstanding, and he has maintained honesty and reliability in his professional conduct.
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 And/or There Are Clear Indications That the Problem Is Being Resolved or Is Under Control
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedAug 17, 2009
- Answer filedSep 8, 2009
- Hearing heldNov 5, 2009
- Decision dateJan 27, 2010
Cite For
- Mitigation of Financial Issues Due to Divorce Under Guideline F
- Consideration of Responsible Actions Taken to Address Financial Difficulties
- Evaluation of the Whole-person Concept in Security Clearance Decisions