Summary
A 31-year-old defense contractor employee was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The applicant had approximately $7,000 in delinquent debts following a 2008 Chapter 7 bankruptcy, which discharged about $5,700 in unsecured consumer debts. She also reaffirmed a $10,000 loan for a used car needed for her commute. One specific concern involved two $291 collection accounts, which represented the same underlying debt owed to a cable company.
Disqualifying conditions were raised under Adjudicative Guidelines (AG) ¶ 19(a) and ¶ 19(c). However, the applicant demonstrated significant efforts to resolve her financial issues through a Chapter 13 bankruptcy plan. She also maintained a positive financial track record since obtaining stable employment and was current on her living expenses.
Mitigating conditions AG ¶ 20(a), AG ¶ 20(c), and AG ¶ 20(d) were applied. The judge found that the applicant's positive steps, improved financial management, and demonstrated maturity and responsibility, as supported by reference letters and testimonies, mitigated the security concerns. Consequently, her security clearance was granted.
Why the Applicant Prevailed
- The applicant has taken positive steps to resolve her delinquent debts through a court-supervised repayment plan.
- She has demonstrated improved financial management and is current on her living expenses.
- Reference letters and testimonies from colleagues highlighted her maturity, responsibility, and determination to avoid past financial mistakes.
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(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
Key Rule Quoted
“An applicant is not required to show that she has completely paid off her indebtedness, only that she has established a reasonable plan to resolve her debts and has ‘taken significant actions to implement that plan.’”
Procedural Posture
- SOR issuedJul 24, 2014
- Answer filedSep 11, 2014
- Hearing heldDec 2, 2014via video teleconference
- Decision dateFeb 23, 2015
Cite For
- Mitigation of Financial Issues Under Guideline F
- Importance of Demonstrating a Repayment Plan for Debts
- Consideration of the Whole-person Concept in Security Clearance Decisions