Summary
A 40-year-old defense contractor employee was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The Statement of Reasons detailed several financial issues, including two medical debts of $89 and $210, and a cell phone debt of $132, all incurred by his wife and subsequently paid in full by the applicant in May and July 2010.
Additionally, the applicant was seven months delinquent on his mortgage, with a past-due amount of $29,886 by July 2010. He also incurred a $662 debt to the Veteran’s Administration due to withdrawing from college, which he fully repaid between October 2009 and March 2010. Another debt of $1,515, incurred by his wife while he was deployed, was repaid in full by August 4, 2005.
The judge found substantial mitigation, noting that the financial difficulties largely stemmed from his wife's job loss and their separation. The applicant demonstrated a commitment to resolving his debts, having paid off most obligations and entered into a manageable agreement for his mortgage delinquency. He provided a reasonable plan and had sufficient resources to fulfill his remaining obligations, leading to the clearance being granted.
Why the Applicant Prevailed
- The applicant demonstrated a commitment to resolving his financial obligations, having paid off most debts and entered into a mortgage modification agreement.
- The applicant's financial difficulties were primarily due to circumstances beyond his control, including his wife's job loss and their separation.
- The applicant provided evidence of a reasonable plan to manage his remaining debt and had sufficient resources to fulfill his obligations.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)appliedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
- AG ¶ 20(b)appliedThe Conditions 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
- 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 show that [he] has completely paid off [his] indebtedness, only that [he] has established a reasonable plan to resolve [his] debts and has ‘taken significant actions to implement that plan.’”
Procedural Posture
- SOR issuedSep 17, 2010
- Answer filedFeb 2, 2011
- Hearing heldMay 12, 2011
- Decision dateAug 31, 2011
Cite For
- Mitigation of Financial Concerns Under Guideline F Due to Circumstances Beyond the Applicant's Control
- Reasonable Plan to Resolve Debts and Significant Actions Taken to Implement That Plan
- Demonstration of Financial Responsibility and Commitment to Fulfilling Obligations.