Summary
The applicant, a 52-year-old employee of a Department of Defense contractor, sought a security clearance under Guideline F due to financial considerations. He had a history of financial difficulties, including a Chapter 7 bankruptcy and multiple delinquent debts, but demonstrated responsible behavior by modifying his mortgage, maintaining child support payments, and actively participating in bankruptcy counseling. The judge found that the applicant's financial issues were largely beyond his control and that he was taking steps to resolve them, leading to a decision to grant the security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: You filed for Chapter 7 bankruptcy in November 2003 (1.a). A $4,858 judgment filed against you in February 2012 on behalf of your homeowner’s association (1.b). A $1,282 cell phone account that was placed for collection in August 2012 (1.c). A $194 medical account (1.d). A delinquent medical account in the amount of $669 (1.e). A delinquent medical account in the amount of $454 (1.f). A delinquent medical account in the amount of $88 (1.g). A delinquent medical account in the amount of $150 (1.h). A delinquent child support account in the amount of $11,379 (1.i). A delinquent child support account in the amount of $5,013 (1.j). A mortgage account that was past due in the approximate amount of $92,047 (1.k). A $1,565 collection account (1.l). A $16,587 automobile loan judgment entered against you (1.m). A $15,415 credit card judgment entered against you on May 2013 (1.n). A $1,026 phone account placed for collection (1.o). A delinquent medical account in the amount of $78 (1.p). A delinquent medical account in the amount of $76 (1.q). A delinquent medical account in the amount of $150 (1.r). A delinquent medical account in the amount of $240 (1.s). A delinquent medical account in the amount of $233 (1.t). You filed for Chapter 7 bankruptcy in December 2014 (1.u).
The judge granted the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(b), AG ¶ 20(c). The decision turned on the following: The applicant's financial problems were largely due to circumstances beyond his control, including job loss and underemployment; He demonstrated responsible behavior by modifying his mortgage and maintaining current child support payments; The applicant is actively participating in bankruptcy counseling and has shown a commitment to financial responsibility.
Why the Applicant Prevailed
- The applicant's financial problems were largely due to circumstances beyond his control, including job loss and underemployment.
- He demonstrated responsible behavior by modifying his mortgage and maintaining current child support payments.
- The applicant is actively participating in bankruptcy counseling and has shown a commitment to financial responsibility.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
- AG ¶ 20(b)appliedConditions That Resulted in Financial Problems Were Largely Beyond the Person's Control
- AG ¶ 20(c)appliedReceived or Is Receiving Counseling for the Problem
Key Rule Quoted
“An individual who is financially overextended is at risk of having to engage in illegal acts to generate funds.”
Procedural Posture
- SOR issuedJul 14, 2014
- Answer filedJul 23, 2014
- Hearing heldJan 29, 2015
- Decision dateFeb 26, 2015
Cite For
- Mitigating Conditions Under Guideline F Due to Circumstances Beyond Control
- Responsible Financial Behavior in the Context of Bankruptcy
- Impact of Employment Status on Financial Obligations