Summary
The applicant, a 51-year-old widower employed by a defense contractor, faced security concerns under Guideline F due to financial difficulties stemming from his wife's death and subsequent health issues. The judge found that the applicant had taken significant steps to address his debts, including filing for bankruptcy and establishing payment arrangements, leading to a decision to grant his security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant admits that he is indebted for past-due student loans in the amount of $111,483. This is Applicant’s largest creditor. Applicant has made a payment arrangement with this creditor and has been paying $500 a month on this account for approximately six months (1.a). Applicant denied that he was indebted for a past-due telephone account in the amount of $228. At the hearing Applicant stated that he had confirmed the account as his debt (1.b). Applicant admits that he is indebted for a past-due telephone account in the amount of $286. However, Applicant had issues with the company and filed a dispute with the credit reporting agencies (1.c). Applicant denies that he is indebted for a past-due cable television account in the amount of $205. Applicant filed a dispute with the credit reporting agencies (1.d). Applicant admits that he is indebted for a past-due medical bill in the amount of $349 (1.e). Applicant admits that he is indebted for a past-due medical bill in the amount of $54 (1.f). Applicant admits that he is indebted for a past-due medical bill in the amount of $1,135 (1.g). Applicant admits that he is indebted for a past-due medical bill in the amount of $156 (1.h). Applicant admits that he is indebted for a past-due medical bill in the amount of $2,021 (1.i). Applicant could not confirm or deny that he is indebted for a past-due medical bill in the amount of $255 (1.j). Applicant denied that he is indebted for a past-due department store bill in the amount of $532, stating he had made payments on this debt (1.k). Applicant admits that he is indebted for a past-due credit card bill of his late wife in the amount of $10,078 (1.l). Applicant admits that he is indebted for a past-due revolving line of credit in the amount of $7,693 (1.m). Applicant admits that he is indebted for a past-due telephone bill in the amount of $391. He further stated that the account is in dispute because of bad service (1.n). Applicant admits that he is indebted for a past-due medical bill in the amount of $1,250. He further stated that the account is in dispute because of issues concerning health insurance (1.o). Applicant denied that he is indebted to the Internal Revenue Service in the amount of $6,187. Applicant submits that he has a payment arrangement with the IRS and has been making monthly payments of $255 on this tax debt since 2010 (1.p).
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(d), AG ¶ 20(c). The decision turned on the following: The applicant demonstrated a stable current financial situation and had initiated a good-faith effort to repay overdue creditors; The financial difficulties were largely due to circumstances beyond the applicant's control, including the death of his wife and his own health issues; The applicant received financial counseling and was actively working to resolve his debts.
Why the Applicant Prevailed
- The applicant demonstrated a stable current financial situation and had initiated a good-faith effort to repay overdue creditors.
- The financial difficulties were largely due to circumstances beyond the applicant's control, including the death of his wife and his own health issues.
- The applicant received financial counseling and was actively working to resolve his debts.
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 so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
- AG ¶ 20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
- AG ¶ 20(d)appliedInitiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
- AG ¶ 20(c)appliedClear Indications That the Problem Is Being Resolved or Is Under Control
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 issuedDec 18, 2013
- Answer filedJan 13, 2014
- Hearing heldMar 13, 2014
- Decision dateMay 7, 2014
Cite For
- Mitigation of Financial Difficulties Under Guideline F
- Impact of Personal Circumstances on Financial Reliability
- Evaluation of Good-faith Efforts to Resolve Debts