Summary
A 61-year-old warehouse manager and Army veteran was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The Statement of Reasons cited a $74,750 charged-off debt, discharged through Chapter 7 bankruptcy in December 2014, along with federal income tax debt of $28,000 and state income tax debt of $3,138. At the time of review, the applicant still owed approximately $15,000 in combined state and federal tax debts.
Disqualifying conditions under Guideline F were raised, specifically AG ¶ 19(a) and AG ¶ 19(c). However, the judge applied mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), and AG ¶ 20(d).
The clearance was granted because the applicant demonstrated a good-faith effort to resolve her financial issues, including establishing payment plans for her debts and providing evidence of current payment arrangements with tax authorities. The judge concluded that her financial problems were unlikely to recur and did not undermine her reliability or trustworthiness.
Why the Applicant Prevailed
- The applicant demonstrated a good-faith effort to resolve her financial issues through bankruptcy and payment plans.
- She provided evidence of her progress in managing her debts, including current payment arrangements with tax authorities.
- The judge found that the financial problems were unlikely to recur and did not cast doubt on her reliability or trustworthiness.
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
- AG ¶ 20(b)appliedThe Conditions 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 And/or There Are Clear Indications That the Problem Is Being Resolved or Is Under Control
- AG ¶ 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the adjudicative guidelines.”
Procedural Posture
- SOR issuedFeb 4, 2015
- Answer filedFeb 25, 2015
- Hearing heldAug 21, 2015Applicant waived her right to 15 days notice.
- Decision dateSep 11, 2015
Cite For
- Application of Mitigating Conditions Under Guideline F
- Good-faith Efforts to Resolve Financial Issues
- Consideration of the Whole-person Concept in Security Clearance Decisions