Summary
A 33-year-old single mother with a college degree was granted a security clearance despite concerns under Guideline F (Financial Considerations). The Statement of Reasons cited two bankruptcies: a Chapter 7 filing in May 2002, discharged in September 2002, and a Chapter 13 filing in January 2012, which included over $137,000 in liabilities and was pending at the time of the allegations. These issues raised disqualifying conditions under Adjudicative Guidelines ¶ 19(a) and ¶ 19(c).
However, the applicant demonstrated significant mitigating factors. She made consistent payments on her debts, including approximately $31,000 paid under the Chapter 13 bankruptcy before its conversion to Chapter 7. She also completed financial counseling and obtained a certificate of debtor education, showing proactive efforts to manage her finances.
The applicant's financial difficulties were largely attributed to circumstances beyond her control, such as unemployment and medical issues affecting her child's father. The judge found that these mitigating conditions, specifically Adjudicative Guidelines ¶ 20(a), ¶ 20(b), ¶ 20(c), and ¶ 20(d), sufficiently addressed the financial concerns, and the security clearance was GRANTED.
Why the Applicant Prevailed
- The applicant demonstrated a history of making consistent payments on her debts, including approximately $31,000 paid under Chapter 13 bankruptcy before conversion to Chapter 7.
- The applicant completed financial counseling and obtained a certificate of debtor education, showing proactive steps to manage her financial situation.
- The applicant's financial difficulties were largely due to circumstances beyond her control, including unemployment and medical issues affecting her child's father.
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 protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedApr 30, 2015
- Answer filed—
- Hearing heldDec 3, 2015
- Decision dateFeb 17, 2016
Cite For
- Mitigation of Financial Difficulties Under Guideline F
- Consideration of Circumstances Beyond the Applicant's Control in Financial Matters
- Good-faith Efforts to Resolve Debts and Financial Counseling as Mitigating Factors