Summary
The applicant, a 43-year-old defense contractor with a history of financial difficulties, sought a security clearance under Guideline F due to 12 delinquent debts totaling $72,051 and a Chapter 7 bankruptcy in 2003. The judge found that the applicant had taken significant steps to resolve his debts, including garnishment for child support and repayment agreements, leading to a decision to grant the security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant owes child support to his former wife. That alleged amount is $8,330 (1.a). Applicant owes a collector $681 for a debt owed to a bank (1.b). Applicant owes a credit card company $1,414 (1.c). Applicant owes $126 on a medical account (1.d). Applicant owes $7,837 to a bank for a student loan (1.e). Applicant owes another student loan debt to a bank in the amount of $10,556 (1.f). Applicant owes $657 to a credit card issuer (1.g). Applicant owes $1,172 to a credit card issuer for an unpaid debt (1.h). Applicant owes $864 on a medical account that is paid (1.i). Applicant owes $582 on a credit card account (1.j). Applicant owes $3,828 to a credit card issuer (1.k). Applicant owes student loans totaling $36,004 from his college education (1.l). Applicant filed a Chapter 7 bankruptcy in April 2003 (1.m).
The judge granted the clearance. The government raised disqualifying conditions F.1.a, F.1.c. The judge applied mitigating conditions F.2.b, F.2.c, F.2.d. The decision turned on the following: The applicant demonstrated a good-faith effort to resolve all delinquent debts; The applicant's financial issues were largely due to circumstances beyond his control, such as unemployment and relocation for work; All debts listed in the SOR were either resolved or in the process of being resolved.
Why the Applicant Prevailed
- The applicant demonstrated a good-faith effort to resolve all delinquent debts.
- The applicant's financial issues were largely due to circumstances beyond his control, such as unemployment and relocation for work.
- All debts listed in the SOR were either resolved or in the process of being resolved.
Conditions Referenced
- F.1.araisedInability or Unwillingness to Satisfy Debts
- F.1.craisedA History of Not Meeting Financial Obligations
- F.2.bappliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
- F.2.cappliedThe 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
- F.2.dappliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
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 issuedMar 20, 2014
- Answer filedApr 17, 2014
- Hearing heldJul 24, 2014in person
- Decision dateOct 30, 2014
Cite For
- Mitigating Conditions for Financial Considerations Under Guideline F
- Good-faith Efforts to Resolve Debts
- Impact of Circumstances Beyond Control on Financial Obligations