Summary
A 38-year-old quality assurance specialist for a DOD contractor was granted a security clearance despite concerns under Guideline F (Financial Considerations). The Statement of Reasons cited 11 unpaid debts totaling $30,167, one judgment, and a Chapter 13 bankruptcy petition filed on July 13, 2013. His last payments on these debts occurred between July 2008 and 2011. The applicant also completed a required credit counseling course on July 19, 2013, and had previously filed for Chapter 7 bankruptcy in February 2003, with debts discharged in June 2003.
The applicant's financial problems began shortly after his 2008 marriage due to his wife's spending habits, and his recent divorce proceedings added further expenses. He has not incurred new unpaid debts since 2011 and pays his current bills. To address his financial situation, he reduced monthly living expenses and initiated a Chapter 13 bankruptcy plan requiring $450 payments for 60 months, making his first payment on August 22, 2013.
The judge granted the clearance, finding that the applicant mitigated the financial concerns. This decision was based on his demonstrated plan to resolve financial problems through Chapter 13 bankruptcy, his affirmative actions to pay or resolve most delinquent debts, and the determination that his financial issues were largely due to circumstances beyond his control, specifically his wife's spending habits and divorce.
Why the Applicant Prevailed
- The applicant demonstrated a plan to resolve his financial problems through Chapter 13 bankruptcy.
- He has taken affirmative actions to pay or resolve most of the delinquent debts raising security concerns.
- The applicant's financial issues were largely due to circumstances beyond his control, including his wife's spending habits and divorce.
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)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 evidence in support of granting a security clearance to Applicant under the whole-person concept is more substantial than the evidence in support of denial.”
Procedural Posture
- SOR issuedJul 19, 2013
- Answer filedAug 2, 2013Requested decision on the written record.
- Hearing held—No hearing; decision made on the written record.
- Decision dateOct 18, 2013
Cite For
- Mitigation of Financial Issues Under Guideline F
- Impact of Personal Circumstances on Financial Obligations
- Whole-person Concept in Security Clearance Evaluations