Summary
A 54-year-old program manager for a defense contractor was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The Statement of Reasons (SOR) detailed six delinquent debts totaling $247,577. These included three credit card debts for $15,795, $3,859, and $3,204, respectively. Additionally, the applicant had a delinquent equity line of credit for $100,000 secured by a rental property, a delinquent second mortgage on her residence for $42,349, and a delinquent mortgage for $82,370 on a property valued at approximately $300,000.
The judge found that the applicant's financial difficulties were largely due to circumstances beyond her control, specifically her husband's unemployment and the housing market crash. Disqualifying conditions AG ¶ 19(a) and AG ¶ 19(c) were raised, but mitigating conditions AG ¶ 20(a), AG ¶ 20(b), and AG ¶ 20(d) were applied.
The applicant demonstrated responsible actions to mitigate her debts, including maintaining contact with creditors, establishing payment plans, and making a good-faith effort to resolve her obligations. This included plans to sell property to pay creditors. Based on these mitigating factors, the security clearance was granted.
Why the Applicant Prevailed
- The applicant maintained contact with creditors and established payment plans for her debts.
- Financial difficulties were largely due to circumstances beyond her control, such as her husband's unemployment and the housing market crash.
- The applicant demonstrated a good-faith effort to resolve her debts, including plans to sell property to pay creditors.
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(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the adjudicative guidelines.”
Procedural Posture
- SOR issuedDec 4, 2012
- Answer filedDec 22, 2012
- Hearing heldMar 6, 2013
- Decision dateApr 2, 2013
Cite For
- Mitigation of Financial Considerations Under Guideline F
- Impact of External Circumstances on Financial Obligations
- Good-faith Efforts to Resolve Debts as a Mitigating Factor