Summary
A 35-year-old defense contractor employee was granted a security clearance despite concerns under Guideline F (Financial Considerations). The Statement of Reasons cited 33 delinquent debts totaling over $15,000, including more than $7,000 in student loans, a $1,426 past-due car loan, and various utility, medical, consumer, and bad check accounts. A prior bankruptcy was also noted. These issues raised disqualifying conditions under Adjudicative Guidelines ¶ 19(a) and ¶ 19(c).
However, the applicant successfully mitigated these concerns by demonstrating a significant change in her financial circumstances. Her difficulties stemmed primarily from her husband's combat injuries and her subsequent unemployment while assisting him. She has since become current on her consolidated student loans and car loan, and has made a good faith effort to resolve her remaining debts.
The judge applied mitigating conditions under Adjudicative Guidelines ¶ 20(a), ¶ 20(b), ¶ 20(c), and ¶ 20(d). The decision to grant the clearance was based on the applicant's current financial stability, responsible actions, and high job performance appraisals, which indicated reliability and trustworthiness.
Why the Applicant Prevailed
- The applicant demonstrated a significant change in financial circumstances due to her husband's combat injuries and her unemployment to assist him.
- She is current on her consolidated student loans and car loan, and has made a good faith effort to resolve her debts.
- The applicant's job performance appraisals reflect high ratings, indicating reliability and trustworthiness.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)appliedBehavior Happened so Long Ago, Was Infrequent, or Occurred Under Circumstances Unlikely to Recur
- AG ¶ 20(b)appliedConditions That Resulted in Financial Problems Were Largely Beyond the Person's Control
- AG ¶ 20(c)appliedReceived or Is Receiving Counseling for the Problem And/or Clear Indications That the Problem Is Being Resolved
- AG ¶ 20(d)appliedInitiated a Good-faith Effort to Repay Overdue Creditors or Resolve Debts
Key Rule Quoted
“The ultimate determination of whether to grant eligibility for a security clearance must be an overall commonsense judgment based upon careful consideration of the guidelines and the whole-person concept.”
Procedural Posture
- SOR issuedJul 1, 2010
- Answer filedAug 9, 2010
- Hearing heldSep 16, 2010
- Decision date—
Cite For
- Mitigation of Financial Considerations Under Guideline F
- Impact of Personal Circumstances on Financial Obligations
- Whole-person Concept in Security Clearance Evaluations