Summary
A 59-year-old government contractor was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The Statement of Reasons (SOR) alleged eight delinquent debts totaling $273,991. These included a $142 medical account from 2005, a $226 collection account delinquent in July 2008, and a $9,033 collection account settled for $1,500 in December 2009. Other debts included a $1,000 charged-off account settled for $275 in February 2011, and three collection accounts from 2005 for $435, $652, and $503 respectively. The most significant debt was a $262,000 delinquent home mortgage, which appeared resolved through a property sale four years prior.
The applicant successfully mitigated these concerns by demonstrating a pattern of responsible financial behavior. All seven consumer debts were satisfied before the hearing, and the applicant credibly testified that the medical debt was paid. The applicant also showed sufficient savings to cover any potential deficiency from the foreclosed mortgage.
The judge found that the applicant’s current financial stability, responsible actions to resolve past issues, and participation in financial counseling warranted a favorable decision. Consequently, the security clearance was granted.
Why the applicant prevailed
- All seven consumer debts were satisfied by the applicant prior to the hearing.
- The applicant has sufficient savings to cover any potential deficiency from the foreclosed mortgage.
- The applicant demonstrated responsible financial behavior and received financial counseling.
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
- AG ¶ 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
Key rule quoted
“A security clearance adjudication is not a debt collection procedure. It is a process designed to evaluate an applicant’s judgment, reliability, and trustworthiness.”
Procedural posture
- SOR issuedJul 5, 2012
- Answer filedAug 3, 2012
- Hearing heldFeb 26, 2013
- Decision dateMar 15, 2013
Cite for
- Mitigation of Financial Issues Under Guideline F
- Demonstrating Responsible Financial Behavior
- Impact of Personal Circumstances on Financial Obligations