Summary
This case concerns a 43-year-old software engineer and section manager who sought to maintain her top secret security clearance despite past financial issues, which were evaluated under Guideline F (Financial Considerations). The Statement of Reasons detailed several allegations, including a 2002 bankruptcy filing, a $9,893 IRS tax lien from February 2010, and outstanding federal income tax for 2006, 2008, and 2009. Additionally, the applicant had a $1,166 charged-off credit card debt that has since been paid, and a $5,000 loan from July 2008 for household expenses that was placed for collection.
Disqualifying conditions under AG ¶ 19(a) and AG ¶ 19(c) were raised. However, the judge applied mitigating conditions under AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d), and AG ¶ 20(e).
The security clearance was GRANTED because the applicant demonstrated consistent monthly payments to the IRS and other creditors, showing a good faith effort to resolve her debts. The financial difficulties were largely attributed to circumstances beyond her control, specifically her child's medical expenses and her husband's loss of income. Furthermore, the financial problems occurred over five years prior and had since been addressed, indicating a low likelihood of recurrence.
Why the Applicant Prevailed
- The applicant has made consistent monthly payments to the IRS and other creditors, demonstrating a good faith effort to resolve her debts.
- The financial issues were largely due to circumstances beyond her control, including her child's medical expenses and her husband's loss of income.
- The applicant's financial problems occurred over five years ago and have since been addressed, indicating unlikely recurrence.
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)rejectedThe 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
- AG ¶ 20(e)notedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due Debt
Key Rule Quoted
“The protection of the interests of security is the paramount consideration.”
Procedural Posture
- SOR issuedSep 18, 2013
- Answer filedNov 5, 2013
- Hearing heldJan 15, 2014Record held open for additional information.
- Decision dateMar 11, 2014
Cite For
- Mitigation of Financial Issues Under Guideline F Due to Circumstances Beyond Control
- Good Faith Efforts to Resolve Debts as a Basis for Granting Security Clearance
- Consideration of the Whole-person Concept in Financial Cases