Summary
This security clearance decision involved an applicant, a federal contractor with over a decade of clearance history, facing concerns under Guideline F (Financial Considerations). The Statement of Reasons cited a mortgage, a $40,000 second mortgage that was forgiven due to predatory lending practices, and a $2,000 credit card debt for which the applicant lacked documentary proof of payment. Disqualifying conditions under AG ¶ 19(a) and AG ¶ 19(c) were raised.
However, the applicant demonstrated that her financial difficulties stemmed primarily from circumstances beyond her control, including medical issues and employment changes. She proactively addressed these concerns by filing for Chapter 13 bankruptcy, under which she has consistently made required monthly payments.
Furthermore, the applicant sought financial counseling and implemented a responsible family budget. Mitigating conditions under AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), and AG ¶ 20(d) were applied, leading to the ultimate decision to GRANT the security clearance.
Why the Applicant Prevailed
- The applicant demonstrated that her financial issues were largely due to circumstances beyond her control, including medical complications and employment changes.
- She filed for Chapter 13 bankruptcy and has been making consistent monthly payments as required by the plan.
- The applicant received financial counseling and established a responsible family budget to manage her finances.
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
- AG ¶ 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors
Key Rule Quoted
“An individual applicants are eligible for access to classified information only upon a finding that it is clearly consistent with the national interest to authorize such access.”
Procedural Posture
- SOR issuedFeb 2, 2015
- Answer filed—
- Hearing heldMay 26, 2015
- Decision dateAug 21, 2015
Cite For
- Mitigation of Financial Issues Under Guideline F Due to Circumstances Beyond Control
- Successful Demonstration of Responsible Financial Management Post-bankruptcy
- Impact of Financial Counseling on Security Clearance Eligibility