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Summary

The applicant, a 38-year-old married father of four with a background in computer science, faced security concerns under Guideline F due to financial difficulties stemming from a failed home construction project and subsequent medical issues. Despite admitting to the allegations, the applicant demonstrated proactive efforts to manage his debts through a debt consolidation program and consistent payments, leading to the granting of his security clearance.

Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Construction debt, $7,442 – DISPUTED. Applicant believes this debt may be related to the house construction, but does not recognize it. When he met with the creditor to cancel the construction and set up a payment plan for the house-related debts, this debt was not discussed. He has contacted the collection agency for information, and also disputed it with the credit reporting agency (1.a). Equity loan, $78,000 – PAYMENT PLAN. Applicant secured a loan against his existing home for the new house construction. He established a payment plan in August 2010 for this debt. He has been paying $500 per month through a collection agency. He missed one payment and is working with the company to include it in his upcoming payments (1.b). Credit card, $9,786 – PAYMENT PLAN. Applicant used this credit card for construction costs and education expenses. This debt is included in Applicant's debt consolidation program (1.c). Student loans, $23,113 - PAYMENT PLAN. Applicant's debt consolidation program does not handle student loans, so these two debts are not included in the plan. Applicant has been paying on his student loans since 1999. He had a break in 2000 to 2002. Since 2002, he paid consistently until he missed some payments in 2008 and 2009 (1.d). Student loans, $23,113 - PAYMENT PLAN. Applicant's debt consolidation program does not handle student loans, so these two debts are not included in the plan. Applicant has been paying on his student loans since 1999. He had a break in 2000 to 2002. Since 2002, he paid consistently until he missed some payments in 2008 and 2009 (1.e). Construction debts, $52,500 – PAYMENT PLAN. These three debts are included in Applicant's debt consolidation plan (1.f). Construction debts, $52,500 – PAYMENT PLAN. These three debts are included in Applicant's debt consolidation plan (1.g). Construction debts, $52,500 – PAYMENT PLAN. These three debts are included in Applicant's debt consolidation plan (1.h). Credit card, $8,834 – PAYMENT PLAN. This debt is included in Applicant's debt consolidation program (1.i). Credit cards, $1,743 – UNPAID. Applicant contacted both creditors in about September 2010. He arranged a settlement of $500 for the $573 debt owed to the creditor at allegation 1.j. He also arranged to pay $1,000 to the creditor for the $1,170 debt at allegation 1.l. He is working on arranging a payment plan for each debt (1.j). Credit card, $258 – PAYMENT PLAN. Applicant contacted the creditor and arranged a plan. As of the hearing date, he had paid $158 (1.k). Credit cards, $1,743 – UNPAID. Applicant contacted both creditors in about September 2010. He arranged a settlement of $500 for the $573 debt owed to the creditor at allegation 1.j. He also arranged to pay $1,000 to the creditor for the $1,170 debt at allegation 1.l. He is working on arranging a payment plan for each debt (1.l). Medical debt, $291 – UNPAID. Applicant is unsure about the basis for this debt, but it may relate to follow-up treatments after his stroke. His medical treatment was covered in part by his health insurance. He has been making payments on the doctor’s and hospital bills resulting from his stroke (1.m). Medical debt, $1,267 – UNPAID. This debt relates to fees for doctor’s services at the hospital during Applicant's stroke. He has been in touch with the creditor and also with the hospital’s human resources department to work out a plan for payment, but had not begun payments as of the date of the hearing (1.n). Credit card, $6,567 – PAYMENT PLAN. This account belongs to Applicant's wife. They no longer have the credit card, but it had been used for family and educational expenses. She requested that he remove it from the debt consolidation program. She made a payment plan with the creditor, and has been paying $220 per month. She had been receiving her salary while on maternity leave. When leave pay ends, Applicant will assume the monthly payments (1.o).

The judge granted the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(d). The decision turned on the following: The applicant demonstrated a proactive approach to managing his debts through a debt consolidation program; He provided evidence of consistent payments and efforts to resolve his financial issues; The financial difficulties were largely due to circumstances beyond his control, including unexpected medical expenses.

Why the Applicant Prevailed

• The applicant demonstrated a proactive approach to managing his debts through a debt consolidation program.
• He provided evidence of consistent payments and efforts to resolve his financial issues.
• The financial difficulties were largely due to circumstances beyond his control, including unexpected medical expenses.

Conditions Referenced

Key Rule Quoted

“A security clearance decision is intended only to resolve the question of whether it is clearly consistent with the national interest for an applicant to either receive or continue to have access to classified information.”

Procedural Posture

• SOR issuedAug 12, 2010
• Answer filedSep 2, 2010notarized
• Hearing heldOct 21, 2010
• Decision dateMar 7, 2011

Cite For

• Mitigation of Financial Issues Under Guideline F
• Proactive Debt Management as a Favorable Factor
• Impact of Unforeseen Circumstances on Financial Stability