Summary
A 39-year-old defense contractor employee was granted a security clearance despite concerns under Guideline F (Financial Considerations). The applicant's financial difficulties stemmed from caring for her elderly mother and her husband's unemployment, leading to accumulated delinquent debts.
To address these issues, the applicant filed for Chapter 13 bankruptcy, with monthly payments of $875. This plan includes a delinquent mortgage of $136,000, homeowner's association fees of $22,164, an automobile loan of $11,341, and a $100 debt. Two student loan totals of $21,074 and $18,994 are in an active bankruptcy auto-state. While she was two months behind on bankruptcy payments, she intended to resolve this within the current month. Several other debts were resolved, including amounts of $1,359, $1,533, $90, $30, $55, $75, $50, and $1,425. Debts of $114 (with a $95 balance) and $69 (with a $69 balance) remain. Other debts are awaiting information from credit bureaus or have recently begun payments.
The clearance was granted because the applicant demonstrated a commitment to financial responsibility. She has actively worked with a financial counselor since 2007, resolved numerous debts, and is making good-faith efforts to manage her remaining obligations. Positive testimonials from her supervisor and community members further supported her character and reliability.
Why the Applicant Prevailed
- The applicant has taken significant steps to address her financial issues, including filing for Chapter 13 bankruptcy and working with a financial counselor since 2007.
- She has resolved several debts and is making payments on others, demonstrating a good-faith effort to manage her financial obligations.
- The applicant's supervisor and community members provided positive testimonials regarding her character and reliability.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)appliedConditions 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
“In evaluating Guideline F cases, the Board has previously noted that the concept of ‘meaningful track record’ necessarily includes evidence of actual debt reduction through payment of debts.”
Procedural Posture
- SOR issuedDec 2, 2014
- Answer filedJan 7, 2015
- Hearing heldJul 1, 2015Record remained open until 07/28/2015 for additional submissions.
- Decision dateSep 24, 2015
Cite For
- Mitigating Conditions Under Guideline F for Financial Considerations
- Importance of a Meaningful Track Record in Debt Repayment
- Consideration of Circumstances Beyond the Applicant's Control in Financial Cases