Loading case…

Summary

The applicant, a 58-year-old defense contractor employee and Navy veteran, faced security concerns under Guideline F due to approximately $61,689 in debt to nine creditors. He demonstrated responsible financial behavior by resolving several debts and making regular payments on others, leading to a decision to grant his security clearance.

Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant was indebted to a University in the amount of $1,320, as identified in SOR subparagraph 1.a. Applicant presented a letter from this creditor, dated April 21, 2014, which indicated his account was settled in full. This debt is resolved (1.a). Applicant was indebted to a city for unpaid parking tickets in the amount of $119 as identified in SOR subparagraph 1.b. Applicant presented a letter dated April 16, 2014, which shows that these debts were paid in full on April 2, 2014. These debts are resolved (1.b). Applicant was indebted to a city for unpaid parking tickets in the amount of $87 as identified in SOR subparagraph 1.c. Applicant presented a letter dated April 16, 2014, which shows that these debts were paid in full on April 2, 2014. These debts are resolved (1.c). Applicant was indebted to a collection agency for a cellular phone company in the amount of $127, as identified in SOR subparagraph 1.d. This debt was for a cell phone Applicant procured for his father, while his father was in hospice care. Applicant forgot about the phone after his father passed away and the account went unpaid. Applicant produced a letter from this creditor that this account was settled in full on April 15, 2014. This debt is resolved (1.d). Applicant was indebted to a collection agent for another cellular phone company in the amount of $401, as identified in SOR subparagraph 1.e. This debt was a cellular phone account Applicant opened for his daughter and niece. He was unaware they defaulted on the account, but satisfied it in full when he learned of the delinquency. He provided a letter from the creditor that shows the account was resolved on November 29, 2013 (1.e). Applicant was indebted to a collection agent for a student loan company on three delinquent accounts in the amounts of $4,590, as identified in SOR subparagraph 1.f. Applicant enrolled these three accounts into the Federal Loan Rehabilitation program. He must successfully make payments on these loans over a nine-month period and the loans will be rehabilitated and removed from default status. He made his first payment under this program in April 2014. He has consistently made his payments on time since that date, through an automatic debit from his bank account. These debts are being resolved (1.f). Applicant was indebted to a collection agent for a student loan company on three delinquent accounts in the amounts of $13,917, as identified in SOR subparagraph 1.g. Applicant enrolled these three accounts into the Federal Loan Rehabilitation program. He must successfully make payments on these loans over a nine-month period and the loans will be rehabilitated and removed from default status. He made his first payment under this program in April 2014. He has consistently made his payments on time since that date, through an automatic debit from his bank account. These debts are being resolved (1.g). Applicant was indebted to a collection agent for a student loan company on three delinquent accounts in the amounts of $12,493, as identified in SOR subparagraph 1.h. Applicant enrolled these three accounts into the Federal Loan Rehabilitation program. He must successfully make payments on these loans over a nine-month period and the loans will be rehabilitated and removed from default status. He made his first payment under this program in April 2014. He has consistently made his payments on time since that date, through an automatic debit from his bank account. These debts are being resolved (1.h). Applicant was indebted to the IRS on delinquent taxes for tax years 2005 through 2011 in the amount of $28,635, as identified in SOR subparagraph 1.i. Applicant filed his income tax returns for each of those years, but found that his income tax payroll deductions did not cover what he owed. He met with an IRS agent to seek advice on how to repay his debt and to avoid future tax debt in 2010 or 2011. As a result of that meeting, he increased his payroll deductions and set up an automatic payroll allotment to satisfy his past-due income taxes. His payroll office verified that Applicant has had biweekly payroll deductions of $210 since June 30, 2011. His deductions “have been current and without interruption.” His remaining balance is $22,838.90. He testified he is committed to continuing his payments. This debt is being resolved (1.i).

The judge granted the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(c), AG ¶ 20(d). The decision turned on the following: Applicant resolved multiple debts prior to the hearing; He is making regular payments on remaining debts under a rehabilitation program; Applicant's financial issues were attributed to a marital separation, and he has since reconciled with his wife.

Why the Applicant Prevailed

• Applicant resolved multiple debts prior to the hearing.
• He is making regular payments on remaining debts under a rehabilitation program.
• Applicant's financial issues were attributed to a marital separation, and he has since reconciled with his wife.

Conditions Referenced

Key Rule Quoted

“The administrative judge’s overarching adjudicative goal is a fair, impartial, and commonsense decision.”

Procedural Posture

• SOR issuedMar 14, 2014
• Answer filedMay 7, 2014
• Hearing heldOct 14, 2014
• Decision dateOct 29, 2014

Cite For

• Mitigation of Financial Issues Under Guideline F
• Good-faith Efforts to Resolve Debts
• Whole-person Concept in Security Clearance Evaluations