Summary
A 40-year-old senior administrative assistant for a defense contractor was granted a security clearance despite concerns under Guideline F (Financial Considerations). The applicant faced allegations regarding 16 delinquent debts totaling $34,352, which included judgments for credit card and medical debts, as well as various bank, telecommunications, store, and mortgage debts. These issues raised disqualifying conditions under Adjudicative Guidelines (AG) ¶ 19(a) and AG ¶ 19(c).
The applicant's financial difficulties were attributed to serious medical issues and an irresponsible spouse. To address these challenges, the applicant filed for Chapter 7 bankruptcy. The judge found that the applicant acted responsibly to resolve her debts, which were scheduled for discharge through the bankruptcy process.
The decision to grant the clearance was based on the application of mitigating conditions AG ¶ 20(b), AG ¶ 20(c), and AG ¶ 20(d). The judge determined that the bankruptcy would provide a fresh financial start, that the financial problems were largely due to circumstances beyond the applicant's control, and that the applicant demonstrated responsible actions to resolve her debts, including maintaining current payments on other obligations.
Why the Applicant Prevailed
- The applicant's delinquent debts will be discharged in bankruptcy, providing a fresh financial start.
- The applicant's financial problems were largely due to circumstances beyond her control, including medical issues and an irresponsible spouse.
- The applicant demonstrated responsible actions to resolve her debts, including filing for bankruptcy and maintaining current payments on other obligations.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)appliedConditions 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
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the adjudicative guidelines.”
Procedural Posture
- SOR issuedApr 8, 2013
- Answer filedApr 29, 2013
- Hearing heldJul 10, 2013
- Decision dateJul 26, 2013
Cite For
- Mitigation of Financial Issues Under Guideline F Due to Circumstances Beyond Control
- Impact of Bankruptcy on Security Clearance Eligibility
- Responsible Actions Taken to Resolve Financial Difficulties