Summary
A 48-year-old retired U.S. Navy veteran with five children was granted a security clearance despite a history of financial difficulties, primarily addressed under Guideline F (Financial Considerations). The applicant had filed for Chapter 7 bankruptcy in 2009 and Chapter 13 bankruptcy in 2014. The Chapter 13 plan included a collection account for $874 and a credit account for $955, both of which were in payment status.
The judge acknowledged the applicant's financial challenges but found that he acted responsibly under difficult circumstances. These included his wife's illness and a reduction in household income, which were considered largely beyond his control. The applicant demonstrated a good-faith effort to repay creditors through his Chapter 13 plan and maintained current payment status.
Ultimately, the decision to grant the clearance was based on the applicant's demonstrated financial responsibility and the mitigating factors surrounding the origin of his debts.
Why the Applicant Prevailed
- The applicant demonstrated a good-faith effort to repay creditors through a Chapter 13 bankruptcy plan.
- The financial difficulties were largely due to circumstances beyond the applicant's control, including medical issues in the family.
- The applicant has maintained a current payment status in his bankruptcy plan and has shown financial responsibility.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)appliedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur and Does Not Cast Doubt on the Individual’s Current Reliability, Trustworthiness, or Good Judgment
- AG ¶ 20(b)appliedThe Conditions That Resulted in the Behavior Were Largely Beyond the Person’s Control and the Individual Acted Responsibly Under the Circumstances
- AG ¶ 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
- AG ¶ 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
Key Rule Quoted
“The U.S. Government must present evidence to establish controverted facts alleged in the SOR.”
Procedural Posture
- SOR issuedJan 20, 2015
- Answer filed—timely response requested review based on written record
- Hearing held—no hearing, decision based on written record
- Decision dateDec 14, 2015
Cite For
- Mitigation of Financial Difficulties Under Guideline F
- Consideration of Circumstances Beyond the Applicant's Control in Financial Cases
- Good-faith Efforts to Repay Creditors in Bankruptcy Cases