Summary
The applicant, a 36-year-old test engineer with a history of financial difficulties, contested the Department of Defense's intent to deny his security clearance under Guideline F. He owed approximately $32,000 on 16 delinquent obligations but had made payments on half and had a plan to address the remainder. The judge found that the applicant mitigated the security concerns related to his financial situation, leading to a granted clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Medical collection account (1.a). Charged-off credit card account (1.b). Charged-off credit card account (1.c). Collection account for jewelry store credit card (1.d). Collection account for a hardware store (1.e). Collection account on a credit card account (1.f). Collection account on a bank credit card account (1.g). US Vet Administration collection account for an overpayment on GI Bill tuition (1.h). US VA collection account (1.i). Collection account (1.j). Collection account on a book club account (1.k). Collection account for internet service (1.l). Collection account on a department store credit card account (1.m). Garnishment for a military store credit card (1.n). Collection account for a credit card (1.o). December 1997 Chapter 7 Bankruptcy (1.p). Home foreclosure 2010 (1.q).
The judge granted the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d). The decision turned on the following: The applicant has made payments on half of his delinquent obligations and has a plan to address the remainder; He demonstrated a good-faith effort to repay overdue creditors and resolve debts; The applicant's financial issues were largely due to circumstances beyond his control, including divorce and underemployment.
Why the Applicant Prevailed
- The applicant has made payments on half of his delinquent obligations and has a plan to address the remainder.
- He demonstrated a good-faith effort to repay overdue creditors and resolve debts.
- The applicant's financial issues were largely due to circumstances beyond his control, including divorce and underemployment.
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
- AG ¶ 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
Key Rule Quoted
“The protection of the interests of security is the paramount consideration.”
Procedural Posture
- SOR issuedAug 29, 2011
- Answer filedSep 13, 2011
- Hearing heldFeb 1, 2012via MS Teams
- Decision dateMar 28, 2012
Cite For
- Mitigation of Financial Issues Under Guideline F
- Good-faith Efforts to Repay Debts
- Impact of Personal Circumstances on Financial Obligations