Summary
The applicant, a 53-year-old interpreter for a defense contractor, faced financial issues under Guideline F due to a business downturn and the U.S. economy. He demonstrated financial responsibility by resolving six debts totaling $89,000 and has the means to address the three disputed debts totaling over $47,000. The judge found that the applicant's financial problems were largely beyond his control and that he is taking steps to resolve his debts, leading to a granted security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: alleged delinquent credit card account to bank C for $22,823 (1.a). alleged delinquent credit card account to bank C for $16,880 (1.b). alleged delinquent credit card account to bank W for $7,225 (1.c).
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), AG ¶ 20(e). The decision turned on the following: The applicant resolved six debts totaling approximately $89,000, demonstrating financial responsibility; He has the financial means to resolve the three disputed debts, with a current income over $120,000; The financial issues were largely due to circumstances beyond his control, such as a business downturn.
Why the Applicant Prevailed
- The applicant resolved six debts totaling approximately $89,000, demonstrating financial responsibility.
- He has the financial means to resolve the three disputed debts, with a current income over $120,000.
- The financial issues were largely due to circumstances beyond his control, such as a business downturn.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
- AG ¶ 20(c)appliedClear Indications That the Problem Is Being Resolved or Is Under Control
- AG ¶ 20(e)appliedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due Debt
Key Rule Quoted
“An applicant is not required, as a matter of law, to establish that he has paid off each and every debt listed in the SOR.”
Procedural Posture
- SOR issuedNov 30, 2012
- Answer filedJan 10, 2013Applicant elected to have the case decided on the written record.
- Hearing held—No hearing; decided on the written record.
- Decision dateApr 5, 2013
Cite For
- Demonstrating Financial Responsibility Through Debt Resolution Under Guideline F
- Mitigating Financial Issues Due to Circumstances Beyond Control
- Disputing Debts as a Reasonable Basis for Financial Concerns