Summary
The applicant, a 66-year-old defense contractor, sought a security clearance under Guideline F due to financial considerations. He had previously filed for bankruptcy but demonstrated a stable financial situation and a good-faith effort to repay debts. The judge found that the applicant's financial issues were largely resolved and did not cast doubt on his reliability or trustworthiness, resulting in a granted decision.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: In early 2012 Applicant and his wife made the difficult decision to file for bankruptcy. They retained a bankruptcy lawyer and submitted their petition under Chapter 7 of the Bankruptcy Code in about May of that year. All of the debts alleged in the SOR were properly referenced in the schedules attached to the petition. Applicant received a Discharge from the bankruptcy court on September 17, 2012. As part of the bankruptcy filing, Applicant and his wife received the required credit counseling (1.a). These debts are student loans of Applicant. These debts were not dischargeable in the bankruptcy. In 2013 Applicant contacted the successor servicer of these loans to discuss how to pay them off. He was required to make nine monthly payments, starting in January 2013, which he successfully did. At that time his loans were no longer viewed as being delinquent, and he was allowed to begin a regular repayment schedule. He is current on his payments, as confirmed by documents provided by Applicant, as well as the most recent credit report in the record (1.b). This unsecured nonpriority debt in the amount of $3,153 was included in Applicant’s bankruptcy petition and was discharged. It has been resolved (1.g). This unsecured nonpriority debt in the amount of $1,993 was included in Applicant’s bankruptcy petition and was discharged. It has been resolved (1.h). This unsecured nonpriority debt in the amount of $3,627 was included in Applicant’s bankruptcy petition and was discharged. It has been resolved (1.i).
The judge granted the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d). The decision turned on the following: The applicant successfully completed bankruptcy and received a discharge of debts; He is current on his mortgage and student loan payments, demonstrating financial stability; The applicant provided evidence of good character and integrity through letters of recommendation.
Why the Applicant Prevailed
- The applicant successfully completed bankruptcy and received a discharge of debts.
- He is current on his mortgage and student loan payments, demonstrating financial stability.
- The applicant provided evidence of good character and integrity through letters of recommendation.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)appliedBehavior Happened so Long Ago, Was Infrequent, or Unlikely to Recur
- AG ¶ 20(b)appliedConditions That Resulted in Financial Problems Were Largely Beyond the Person's Control
- AG ¶ 20(c)appliedClear Indications That the Problem Is Being Resolved or Is Under Control
- AG ¶ 20(d)appliedInitiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
Key Rule Quoted
“Any doubt concerning personnel being considered for access to classified information will be resolved in favor of national security.”
Procedural Posture
- SOR issuedFeb 21, 2014
- Answer filedMar 17, 2014
- Hearing heldMay 1, 2014
- Decision dateMay 29, 2014
Cite For
- Mitigation of Financial Issues Under Guideline F
- Good-faith Effort to Resolve Debts
- Whole-person Concept in Security Clearance Evaluations