Summary
The applicant, a 42-year-old single male with a bachelor's degree, sought a security clearance under Guideline F due to financial considerations. He admitted to significant past-due debts but demonstrated a consistent effort to resolve them through legal representation and payment arrangements. The judge found that the applicant had mitigated the security concerns related to his financial situation, leading to a granted decision.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant denied owing this $13,495 credit card debt. However, through his attorney, he has privately negotiated a payment arrangement with the creditor’s attorney, and has paid this debt down to approximately $9,506 by making $200 a month payments from August 2009 through at least June 2011, when the record closed (1.a). Applicant admitted owing this $78 credit card debt. While Applicant stated that he would resolve this account, he had not done so as of the time the record closed (1.b). Applicant denied owing this $4,884 credit card debt. However, through his attorney, he has privately negotiated a payment arrangement with the creditor’s attorney, and has paid this debt down to approximately $3,854 by making $110 a month payments from January 2010 through at least June 2011, when the record closed (1.c). Applicant admitted owing this $22,230 credit card debt. He states that his attorney is working with the creditor to settle the account (1.d). Applicant denied owing this $3,156 credit card debt. However, through his attorney, he has privately negotiated a payment arrangement with the creditor’s attorney, and has paid this debt down to approximately $1,184 by making $75 a month payments from May 2009 through at least June 2011, when the record closed (1.e). Applicant denied owing this $8,447 credit card debt. He has consistently stated he has no knowledge of this debt, and that he is working with his attorney to have it validated or removed from his credit report (1.f). Applicant admitted owing this $4,844 credit card debt. He states that his attorney is working with the creditor to settle the account (1.g). Applicant admitted owing this $7,116 credit card debt. He states that his attorney is working with the creditor to settle the account (1.h). Applicant denied owing this $6,501 credit card debt. However, through his attorney, he has privately negotiated a payment arrangement with the creditor’s attorney, and has paid this debt down to approximately $5,926 by making $115 a month payments from January 2011 through at least June 2011, when the record closed (1.i). Applicant denied owing this $8,447 credit card debt. He has consistently stated he has no knowledge of this debt, and that he is working with his attorney to have it validated or removed from his credit report (1.j). Applicant admitted owing this $13,007 credit card debt. He states that his attorney is working with the creditor to settle the account (1.k).
The judge granted the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(c), AG ¶ 20(d), AG ¶ 20(e). The decision turned on the following: The applicant demonstrated a good-faith effort to repay overdue creditors; He has been consistently making payments on his debts for several years; The applicant's current financial situation is stable and manageable.
Why the Applicant Prevailed
- The applicant demonstrated a good-faith effort to repay overdue creditors.
- He has been consistently making payments on his debts for several years.
- The applicant's current financial situation is stable and manageable.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- 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 Has Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
- AG ¶ 20(e)appliedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due Debt Which Is the Cause of the Problem
Key Rule Quoted
“An applicant is not required to show that [he or] she has completely paid off [his or] her indebtedness, only that [he or] she has established a reasonable plan to resolve [his or] her debts and has ‘taken significant actions to implement that plan.’”
Procedural Posture
- SOR issuedApr 12, 2011
- Answer filedApr 27, 2011
- Hearing held—Decision made without a hearing
- Decision dateOct 31, 2011
Cite For
- Mitigation of Financial Considerations Under Guideline F
- Good-faith Efforts to Resolve Debts
- Whole-person Concept in Security Clearance Evaluations