Summary
The applicant, a 37-year-old employee of a defense contractor, faced security concerns under Guideline F due to financial issues, including a Chapter 7 bankruptcy and delinquent debts. The judge found that the applicant had taken responsible steps to address her financial situation, including negotiating a payment plan for tax debts and resolving one medical debt, ultimately granting her security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: six medical debts for $561 (1.a). six medical debts for $278 (1.b). six medical debts for $261 (1.c). six medical debts for $138 (1.d). six medical debts for $127 (1.e). six medical debts for $74 (1.f). tax lien against Applicant and her husband for $27,697 (1.g). Chapter 7 bankruptcy petition filed in February 2010 (1.h).
The judge granted the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d), AG ¶ 20(e). The decision turned on the following: The applicant demonstrated responsible financial behavior by negotiating a payment plan for her tax debt and resolving one medical debt; The applicant's financial issues were largely due to circumstances beyond her control, including her ex-husband's abandonment and related debts; The applicant's financial situation was under control, as evidenced by her recent credit report showing no past-due accounts.
Why the Applicant Prevailed
- The applicant demonstrated responsible financial behavior by negotiating a payment plan for her tax debt and resolving one medical debt.
- The applicant's financial issues were largely due to circumstances beyond her control, including her ex-husband's abandonment and related debts.
- The applicant's financial situation was under control, as evidenced by her recent credit report showing no past-due accounts.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)appliedBehavior Happened so Long Ago, Was Infrequent, or Occurred Under Circumstances Unlikely to Recur
- AG ¶ 20(b)appliedConditions That Resulted in Financial Problems Were Largely Beyond the Person's Control
- AG ¶ 20(c)appliedReceived Counseling for the Problem And/or Clear Indications That the Problem Is Being Resolved
- AG ¶ 20(d)appliedInitiated a Good-faith Effort to Repay Overdue Creditors or Resolve Debts
- AG ¶ 20(e)rejectedReasonable Basis to Dispute the Legitimacy of Past-due DebtThe applicant was unable to identify the creditors for five of the six medical debts.
Key Rule Quoted
“A security clearance adjudication is an evaluation of an individual’s judgment, reliability, and trustworthiness. It is not a debt-collection procedure.”
Procedural Posture
- SOR issuedJul 10, 2015
- Answer filedSep 3, 2015
- Hearing heldNov 19, 2015
- Decision dateFeb 23, 2016
Cite For
- Mitigating Conditions Under Guideline F
- Evaluation of Financial Considerations in Security Clearance Cases
- Whole-person Concept in Security Clearance Determinations