Summary
A 28-year-old senior systems administrator for a Department of Defense contractor was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The applicant's financial difficulties arose from the closure of his business, leading to significant accumulated debt.
The Statement of Reasons detailed several financial allegations. One debt of $98 was removed, and the applicant paid approximately $14,000 across three other debts. Additionally, he disputed four debts totaling $7,930, as reflected in credit reports. One debt was listed as in collection, past due, and charged off on an October 7, 2009 credit report.
The clearance was granted because the applicant took substantial steps to resolve his financial issues, including settling over $17,000 in obligations. He demonstrated a reasonable plan for debt resolution, maintained timely payments on current obligations, and his financial difficulties were largely attributed to external economic factors beyond his control.
Why the applicant prevailed
- The applicant took significant steps to repay debts, including settling over $17,000 in obligations.
- He demonstrated a reasonable plan for debt resolution and maintained timely payments on current obligations.
- The applicant's financial difficulties were largely due to external economic factors beyond his control.
Conditions referenced
- F.19(a)raisedInability or Unwillingness to Satisfy Debts
- F.19(c)raisedA History of Not Meeting Financial Obligations
- F.20(b)appliedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
- F.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
- F.20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
- F.20(e)appliedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due Debt Which Is the Cause of the Problem and Provides Documented Proof to Substantiate the Basis of the Dispute or Provides Evidence of Actions to Resolve the Issue
Key rule quoted
“The guidelines presume a nexus or rational connection between proven conduct under any of the criteria listed therein and an applicant’s security suitability.”
Procedural posture
- SOR issuedMar 17, 2010
- Answer filedMar 23, 2010
- Hearing heldMay 27, 2010
- Decision dateAug 26, 2010
Cite for
- Demonstrating a Reasonable Plan for Debt Resolution Under Guideline F
- Evidence of Actual Debt Reduction Through Payment of Debts
- Consideration of External Economic Factors in Financial Difficulties