Summary
A 42-year-old defense contractor with a top secret security clearance faced a security review under Guideline F (Financial Considerations) due to financial difficulties. These issues arose from his wife's unemployment and the real estate market crash. The applicant admitted to several delinquent debts, which included a cable account, a retail purchase, two credit card accounts, a signature loan, and two mortgage loans.
The applicant demonstrated proactive efforts to resolve his financial issues. He paid off a $184 cable account and a $299 retail purchase. For a $32,000 second mortgage, he established a $100 monthly payment plan, and he secured a fixed-rate modification for his primary mortgage, reducing payments by approximately $850 per month. He also arranged payment plans for a $13,000 signature loan and an $8,626 credit card account, with payments deducted directly from his bank. One $3,901 credit card debt remained unresolved as he struggled to locate the correct creditor, and a $414 credit card debt was disputed, with the applicant claiming it was paid.
Despite these outstanding issues, the applicant took responsibility for his financial problems, established payment plans for most debts, and paid off several others. His financial situation had improved, and he presented a credible plan to sell his condominium to further alleviate remaining debts. Consequently, his security clearance was GRANTED.
Why the applicant prevailed
- The applicant took responsibility for his financial problems and made efforts to resolve them.
- He has established payment plans for most of his debts and has paid off several others.
- The applicant's financial situation has improved, and he has a credible plan to sell his condominium to alleviate remaining debts.
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 Largely Beyond the Person's Control
- AG ¶ 20(c)appliedReceiving Counseling or Evidence of Resolving the Problem
- AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue Creditors
- AG ¶ 20(e)rejectedReasonable Basis to Dispute the Legitimacy of the DebtThe applicant did not provide documentation to support his dispute of one debt.
Key rule quoted
“An applicant is not required to establish that he has paid off each and every debt listed in the SOR. He must only show, as Applicant has, that he has a plan to resolve his debts and has taken significant actions to implement it.”
Procedural posture
- SOR issuedOct 22, 2013
- Answer filedNov 13, 2013
- Hearing heldFeb 19, 2014Record held open for additional documents.
- Decision dateMar 27, 2014
Cite for
- Mitigation of Financial Difficulties Under Guideline F
- Good-faith Efforts to Resolve Debts
- Impact of External Circumstances on Financial Stability