Summary
This case concerns a 55-year-old defense contractor employee whose security clearance was initially questioned under Guideline F (Financial Considerations) due to approximately $38,000 in delinquent debts incurred between 1998 and 2009. Specific allegations included IRS tax liens totaling $32,555 from 2004, 2007, and 2009, and a $2,083 debt from a truck repossession in 2007. Other debts included a $301 medical bill from 2013, which was misdirected, and a $299 collection account owed to a furniture company.
The applicant took significant steps over the past four years to resolve these financial concerns. He entered a repayment agreement with the IRS, successfully paying off his tax debts. He also addressed the medical bill and fully paid the furniture company debt.
The judge found that the applicant's actions mitigated the security concerns. He demonstrated improved financial management and had not incurred recent delinquent debts. Consequently, the applicant's security clearance was granted.
Why the Applicant Prevailed
- The applicant took positive steps to address and substantially resolve his delinquent debts over the past four years.
- He entered into a repayment agreement with the IRS and successfully paid off his tax debts.
- The applicant demonstrated improved financial management and has not incurred recent delinquent debts.
Conditions Referenced
- F.19.araisedInability or Unwillingness to Satisfy Debts
- F.19.craisedA History of Not Meeting Financial Obligations
- F.19.graisedFailure to File Annual Federal, State, or Local Income Tax Returns as Required
- F.20.aappliedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
- F.20.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.20.dappliedThe 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 [he] has completely paid off [his] indebtedness, only that [he] has established a reasonable plan to resolve [his] debts and has ‘taken significant actions to implement that plan.’”
Procedural Posture
- SOR issuedJul 23, 2014
- Answer filedAug 11, 2014
- Hearing heldDec 1, 2014via video teleconference
- Decision dateFeb 11, 2015
Cite For
- Mitigation of Financial Issues Under Guideline F Due to Proactive Debt Resolution
- Consideration of the Whole-person Concept in Security Clearance Decisions
- The Importance of Demonstrating a Reasonable Plan for Debt Resolution Rather Than Complete Repayment