Summary
The applicant, a 33-year-old management consultant and U.S. military veteran, faced security concerns under Guideline F due to approximately $61,000 in delinquent debts. After reconciling with his wife and seeking financial counseling, the applicant demonstrated a commitment to resolving his financial issues, leading to the granting of his security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant was responsible for a judgment, filed against him in January 2011 by a country club, for $3,987 (1.a). Applicant was responsible for a $4,504 judgment entered against him by a university in October 2010 (1.b). Applicant owed a delinquent debt of $5,206 to a credit card company (1.c). Applicant owed a creditor $18,917 on an account in collection status (1.d). Applicant was indebted to a bank on a mortgage account that was approximately $21,545 past due with a balance of approximately $80,544 (1.e). Applicant owed a creditor $859 on an account in collection status (1.f).
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(c), AG ¶ 20(d). The decision turned on the following: The applicant admitted all allegations of financial delinquency but demonstrated a commitment to resolving them; He and his wife reconciled and sought financial counseling to address their debts; Five of the six debts were either paid, settled, or in payment plans, showing responsible financial behavior.
Why the Applicant Prevailed
- The applicant admitted all allegations of financial delinquency but demonstrated a commitment to resolving them.
- He and his wife reconciled and sought financial counseling to address their debts.
- Five of the six debts were either paid, settled, or in payment plans, showing responsible financial behavior.
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 Financial Problems Occurred Long Ago and Are Unlikely to Recur
- AG ¶ 20(b)appliedThe Financial Problems Were Largely Beyond the Applicant's Control
- AG ¶ 20(c)appliedThe Applicant Received Counseling for the Financial Problems
- AG ¶ 20(d)appliedThe Applicant Initiated a Good-faith Effort to Repay Overdue Creditors
Key Rule Quoted
“An individual’s good-faith partial payment of debts need not be a bar to access to classified information.”
Procedural Posture
- SOR issuedApr 27, 2012
- Answer filedJun 1, 2012
- Hearing heldJul 30, 2012
- Decision dateAug 15, 2012
Cite For
- Mitigation of Financial Issues Under Guideline F
- Importance of Demonstrating a Plan to Resolve Debts
- Consideration of the Whole-person Concept in Security Clearance Decisions