Summary
The applicant, a 35-year-old Department of Defense contractor, sought a security clearance under Guideline F due to financial considerations stemming from a divorce and unemployment. Despite having five delinquent debts totaling $63,365, the applicant demonstrated a good-faith effort to resolve these debts and was found to be financially stable at the time of the decision, leading to a granted security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: $91 utility account placed for collection in January 2010 (1.a). $16,126 credit card account that was charged off in March 2009 (1.b). $30,634 credit card account that was charged off in May 2009 (1.c). $15,798 credit card account that was charged off in September 2009 (1.d). $716 automobile debt that was charged off in September 2009 (1.e).
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 in the SOR and demonstrated a commitment to resolving his financial issues; He provided evidence of payments made towards his delinquent debts and had resolved two of the five debts listed in the SOR; The applicant's financial difficulties were largely due to circumstances beyond his control, including divorce and unemployment.
Why the Applicant Prevailed
- The applicant admitted all allegations in the SOR and demonstrated a commitment to resolving his financial issues.
- He provided evidence of payments made towards his delinquent debts and had resolved two of the five debts listed in the SOR.
- The applicant's financial difficulties were largely due to circumstances beyond his control, including divorce and unemployment.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
- AG ¶ 20(a)appliedBehavior Happened Long Ago or Infrequently
- AG ¶ 20(b)appliedConditions Largely Beyond the Individual's Control
- AG ¶ 20(c)appliedReceived Counseling and Evidence of Resolution
- AG ¶ 20(d)appliedGood-faith Effort to Repay Creditors
Key Rule Quoted
“An applicant is not required to be debt free, but is required to manage his finances in such a way as to meet his financial obligations.”
Procedural Posture
- SOR issuedOct 26, 2011
- Answer filedNov 8, 2011
- Hearing heldMar 28, 2012
- Decision dateApr 26, 2012
Cite For
- Mitigating Conditions Under Guideline F for Financial Considerations
- Impact of Personal Circumstances on Financial Stability
- Good-faith Efforts in Resolving Delinquent Debts