Summary
This DOHA security clearance decision involved a 60-year-old senior subcontracts administrator for a federal contractor, whose clearance was initially questioned under Guideline F (Financial Considerations). The concerns stemmed from a history of financial difficulties, including failed real estate investments and two Chapter 13 bankruptcy filings.
Specifically, the applicant filed a Chapter 13 case in late 2009, which was dismissed in 2010, followed by a second Chapter 13 filing in October 2010, which was pending confirmation. These issues led to significant credit card debt and unsecured nonpriority claims totaling approximately $326,802, with the largest claim of $239,449 related to a real estate investment. The applicant self-reported these financial problems in February 2010 and cooperated with the subsequent investigation.
Despite these challenges, the judge ultimately granted the security clearance. The decision highlighted the applicant's good-faith efforts to resolve his financial issues, including making monthly payments to the bankruptcy trustee since November 2010, totaling about $27,000. The judge found that the financial problems were being resolved or were under control, and that the applicant's self-reporting demonstrated a willingness to follow regulations.
Why the Applicant Prevailed
- The applicant demonstrated a good-faith effort to repay creditors through substantial payments under a proposed Chapter 13 bankruptcy plan.
- There are clear indications that the applicant's financial problems are being resolved or are under control.
- The applicant self-reported his financial issues to his employer, showing a willingness to follow rules and regulations.
Conditions Referenced
- AG ¶ 19(a)raisedFinancial ConsiderationsThe applicant has a history of excessive indebtedness and financial problems.
- AG ¶ 19(c)raisedFinancial ConsiderationsThe applicant's financial irresponsibility raised concerns about reliability and trustworthiness.
- AG ¶ 20(c)appliedFinancial ConsiderationsThe applicant has received indications that his financial problems are being resolved or are under control.
- AG ¶ 20(d)appliedFinancial ConsiderationsThe applicant initiated a good-faith effort to repay overdue creditors.
Key Rule Quoted
“No one has a right to a security clearance.”
Procedural Posture
- SOR issuedApr 11, 2011
- Answer filed—Applicant initially requested a decision without a hearing but later requested a hearing.
- Hearing heldNov 1, 2011
- Decision dateFeb 7, 2012
Cite For
- Good-faith Effort to Repay Creditors Under Guideline F
- Indications of Financial Problems Being Resolved
- Self-reporting Financial Issues as a Mitigating Factor