Summary
A 44-year-old federal contractor was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The applicant's financial difficulties stemmed from a tumultuous marriage and poor financial management, leading to numerous debts. The Statement of Reasons detailed seven specific debts, including a $1,920 tax lien from State A for tax year 2005, a $174 phone bill, a $712 cable bill, and a $771 debt to a collection company. Other debts included a $1,947 credit card balance, a $49,570 outstanding mortgage from a foreclosure, and a $448 timeshare service fee.
Disqualifying conditions F.19(a), F.19(c), and F.19(e) were raised. However, the applicant demonstrated significant mitigating factors. She proactively resolved her financial issues by paying off 27 of 30 delinquent debts and establishing payment plans for the remaining obligations. The $174 phone bill, for instance, was paid in May 2011.
The judge found that the applicant's commitment to resolving her debts, her improved financial situation, and the fact that many of the circumstances leading to her difficulties were largely beyond her control, mitigated the government's concerns. Mitigating conditions F.20(a), F.20(b), F.20(c), F.20(d), and F.20(e) were applied, leading to the granting of the security clearance.
Why the Applicant Prevailed
- The applicant took proactive steps to resolve her financial issues by paying off 27 of 30 delinquent debts.
- She established payment plans for remaining debts and demonstrated a commitment to living within her means.
- The circumstances leading to her financial difficulties were largely beyond her control, and she has shown clear indications of financial stability.
Conditions Referenced
- F.19(a)raisedInability or Unwillingness to Satisfy Debts
- F.19(c)raisedA History of Not Meeting Financial Obligations
- F.19(e)raisedConsistent Spending Beyond One’s Means
- F.20(a)appliedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
- 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
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedMar 22, 2011
- Answer filedApr 24, 2011
- Hearing heldJun 23, 2011
- Decision dateAug 18, 2011
Cite For
- Mitigation of Financial Issues Under Guideline F
- Proactive Debt Resolution Efforts
- Impact of Personal Circumstances on Financial Management