Summary
A 55-year-old defense contractor with prior military service was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The applicant faced allegations regarding 14 delinquent debts totaling approximately $41,211. These included a $2,906 debt on family property, a $12,140 judgment, and two debts of $7,781 and $7,393 resulting from vehicle repossessions. Other debts included a $74 joint account with his daughter, an $828 disputed debt, and a $1,197 telecommunications debt.
The applicant's financial difficulties were primarily attributed to unemployment following a deployment, a circumstance deemed largely beyond his control. Disqualifying conditions under Adjudicative Guidelines (AG) ¶ 19(a) and AG ¶ 19(c) were initially raised.
However, the applicant demonstrated significant mitigating efforts, including making payments on several debts and establishing payment plans for others. The judge found that the applicant made a good-faith effort to resolve his financial issues, applying mitigating conditions under AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d), and AG ¶ 20(e). Consequently, the financial concerns were deemed mitigated, and eligibility for a security clearance was granted.
Why the Applicant Prevailed
- The applicant made payments on several debts and set up payment plans for others.
- The applicant's financial difficulties were largely due to circumstances beyond his control, such as unemployment.
- The applicant demonstrated a good-faith effort to resolve his financial issues.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)appliedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
- AG ¶ 20(b)appliedThe Conditions 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
- AG ¶ 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
- AG ¶ 20(e)rejectedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due DebtThe applicant did not present documented proof concerning his dispute of one debt.
Key Rule Quoted
“An applicant is not required, as a matter of law, to establish resolution of every debt alleged in the SOR.”
Procedural Posture
- SOR issuedMar 4, 2014
- Answer filedApr 9, 2014
- Hearing held—Decided on the written record.
- Decision dateSep 2, 2014
Cite For
- Mitigation of Financial Considerations Under Guideline F
- Good-faith Efforts to Resolve Debts
- Impact of Unemployment on Financial Stability