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Summary

The applicant, a 46-year-old single woman employed by a defense contractor, faced security concerns under Guideline F (Financial Considerations) and Guideline E (Personal Conduct) due to significant delinquent debts and false statements on her security clearance application. The applicant successfully filed for Chapter 7 bankruptcy, resolving her debts, and demonstrated that her omissions were unintentional. The judge granted her security clearance, finding that the applicant had mitigated the concerns regarding her financial situation and personal conduct.

Under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: The Government alleges in this paragraph that Applicant is ineligible for clearance because she has made false statements to the Department of Defense during the clearance screening process. Applicant admitted that she had false answers on her questionnaire, but denied there was an intent to deceive the Government (2.a). Applicant admits that she was indebted to a creditor for a loan in the amount of $3,138. This debt was included in Applicant’s bankruptcy petition (1.a). Applicant admits that she was indebted to a creditor for a loan in the amount of $315. This debt was included in Applicant’s bankruptcy petition (1.b). Applicant admits that she was indebted to a creditor for a loan in the amount of $502. This debt was included in Applicant’s bankruptcy petition (1.c). Applicant admits that she was indebted to a jewelry company for a bad debt in the amount of $117. This debt was included in Applicant’s bankruptcy petition (1.d). Applicant admits that she was indebted to a creditor for a credit card debt in the amount of $516. This debt was included in Applicant’s bankruptcy petition (1.e). Applicant admits that she was indebted to a creditor for the remainder of an automobile loan after repossession in the amount of $4,132. This debt was included in Applicant’s bankruptcy petition (1.f). Applicant admits that she was indebted to a creditor for a credit card debt in the amount of $2,679. Applicant’s bankruptcy petition does not include a creditor by this name (1.g). Applicant admits that she was indebted to a creditor for the remainder of an automobile loan in the amount of $12,001. This debt was included in Applicant’s bankruptcy petition (1.h). Applicant admits that she was indebted to a creditor for a past-due debt in the amount of $1,344. This debt was included in Applicant’s bankruptcy petition (1.i).

The judge granted the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c), AG ¶ 16(a). The judge applied mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), AG ¶ 17(a). The decision turned on the following: The applicant successfully filed for Chapter 7 bankruptcy, discharging her debts; The applicant demonstrated a credible intent and ability to manage her finances going forward; The judge found that the applicant's false statements were unintentional and not made with intent to deceive.

Why the Applicant Prevailed

• The applicant successfully filed for Chapter 7 bankruptcy, discharging her debts.
• The applicant demonstrated a credible intent and ability to manage her finances going forward.
• The judge found that the applicant's false statements were unintentional and not made with intent to deceive.

Conditions Referenced

Key Rule Quoted

“Any doubt concerning personnel being considered for access to classified information will be resolved in favor of national security.”

Procedural Posture

• SOR issuedFeb 26, 2014
• Answer filedMar 19, 2014
• Hearing heldJun 19, 2014
• Decision dateJul 31, 2014

Cite For

• Mitigation of Financial Difficulties Through Bankruptcy Under Guideline F
• Unintentional Omissions in Security Clearance Applications Under Guideline E
• Whole-person Concept in Evaluating Security Clearance Eligibility