Summary
A 40-year-old certified internal auditor with three children was granted a security clearance under Guideline F (Financial Considerations), despite initial concerns regarding multiple outstanding debts. The Statement of Reasons detailed eleven allegations, including two judgments for $10,807 (HOA fees) and $7,801 (credit card), a $210,000 mortgage, a $3,891 student loan, and several other credit card, medical, and cellular telephone debts ranging from $100 to $8,126.
Disqualifying conditions under Guideline F were initially raised, but the applicant successfully demonstrated mitigating factors. His financial difficulties were largely attributed to circumstances beyond his control, specifically job loss and increased family expenses, including daycare costs.
The applicant made a good-faith effort to resolve his financial obligations. He satisfied most outstanding debts and established payment plans with remaining creditors. Consequently, the mitigating conditions were applied, leading to the decision to grant his security clearance.
Why the Applicant Prevailed
- Applicant satisfied most outstanding debts and is meeting payment plans with remaining creditors.
- Financial issues were largely due to circumstances beyond his control, including job loss and increased family expenses.
- Applicant demonstrated a good-faith effort to resolve his financial obligations.
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 And/or There Are Clear Indications That the Problem Is Being Resolved or Is Under Control
- AG ¶ 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
Key Rule Quoted
“An applicant is not required to resolve every debt alleged in the SOR. The most important evidence an applicant must present is a plan and a 'meaningful track record' of debt reduction.”
Procedural Posture
- SOR issuedJun 5, 2013
- Answer filedJun 25, 2013Notarized
- Hearing heldAug 22, 2013Held as scheduled
- Decision dateDec 13, 2013
Cite For
- Mitigation of Financial Issues Under Guideline F
- Consideration of Circumstances Beyond Control in Financial Matters
- Good-faith Efforts in Debt Resolution as a Mitigating Factor