Summary
A 46-year-old defense contractor employee was granted a security clearance despite concerns under Guideline F (Financial Considerations). The applicant faced allegations totaling approximately $210,505 in debt, including a dismissed Chapter 13 bankruptcy. Specific debts included a $14,012 student loan co-signed for his former wife, an approximate $67,000 delinquency on his primary residence mortgage, and an approximate $8,493 debt for a repossessed vehicle. Additionally, he owed approximately $121,000 on a second mortgage for a former residence and had a federal tax liability of about $25,000 from 2010-2012.
The judge determined that the applicant's financial issues stemmed from unforeseen circumstances, specifically his ex-wife's medical condition, a subsequent divorce, and an economic downturn. The applicant demonstrated good faith efforts to resolve his debts, including making payment arrangements and engaging in financial counseling.
Ultimately, the judge found that the applicant's financial problems were unlikely to recur, noting his long history of responsible financial behavior prior to these issues. Based on these mitigating factors, eligibility for a security clearance was granted.
Why the applicant prevailed
- The applicant's financial difficulties were largely due to circumstances beyond his control, including his ex-wife's medical issues and a divorce.
- He demonstrated good faith efforts to resolve his debts, including making payment arrangements and participating in financial counseling.
- The applicant's financial problems were unlikely to recur, and he had a long history of responsible financial behavior prior to the issues.
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(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
“A security clearance adjudication is not a proceeding aimed at collecting an applicant’s personal debts. Rather, it is a proceeding aimed at evaluating an applicant’s judgment, reliability, and trustworthiness.”
Procedural posture
- SOR issuedNov 19, 2013
- Answer filedJan 13, 2014
- Hearing heldMar 27, 2014
- Decision dateMay 20, 2014
Cite for
- Mitigating Conditions Under Guideline F Due to Unforeseen Circumstances
- Good Faith Efforts to Resolve Financial Issues
- Whole-person Concept in Security Clearance Evaluations