Summary
A 44-year-old Engineering Supervisor with a mathematics degree was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The applicant's financial difficulties stemmed primarily from her husband's medical issues and their subsequent separation.
The Statement of Reasons detailed several debts: a mortgage account with a past-due amount of approximately $64,266 on a house in foreclosure, which has since been sold with no deficiency balance owed; a charged-off account of approximately $512, for which the applicant paid $205.11, then an additional $100 in October 2015, with plans to pay the remaining balance; and two delinquent medical accounts of approximately $166 and $57, both of which were paid off in October 2015.
The judge determined that the applicant's financial issues were largely beyond her control and that she had made good-faith efforts toward resolution, including paying off several accounts and receiving financial counseling. Evidence of financial rehabilitation was clear, leading to the decision to grant the security clearance.
Why the applicant prevailed
- The applicant demonstrated that her financial issues were largely due to circumstances beyond her control, including her husband's medical problems and their separation.
- The applicant has made a good-faith effort to resolve her debts, including paying off several delinquent accounts and receiving financial counseling.
- There is clear evidence of financial rehabilitation, with no deficiency balance owed on the foreclosed property.
Conditions referenced
- 19(a)raisedInability or Unwillingness to Satisfy Debts
- 19(c)raisedA History of Not Meeting Financial Obligations
- 20(b)appliedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
- 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
- 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
Key rule quoted
“The adjudicative process is an examination of a sufficient period of a person’s life to make an affirmative determination that the person is an acceptable security risk.”
Procedural posture
- SOR issuedMay 19, 2015
- Answer filedJun 18, 2015Applicant elected to have the case determined on a written record.
- Hearing held—No hearing; case determined on written record.
- Decision dateFeb 25, 2016
Cite for
- Mitigating Circumstances Under Guideline F Due to Unexpected Personal Issues
- Good-faith Efforts to Resolve Financial Obligations
- Financial Rehabilitation and Counseling as Mitigating Factors