Summary
A 58-year-old logistician with over 40 years in the defense industry was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The Statement of Reasons detailed several financial issues, including a $152 delinquent account that was settled for $100, and a $954 delinquent credit card debt paid off over six months. Additionally, a $34,210 mortgage deficiency balance was noted, though the applicant stated she was unaware of this specific debt. In October 2007, the applicant filed for Chapter 13 bankruptcy, which she described as a strategy to facilitate mortgage modification and payment arrangements with other creditors.
Disqualifying conditions 19(a) and 19(c) were raised, but mitigating conditions 20(b), 20(c), and 20(d) were applied. The decision to grant the clearance was based on compelling evidence of financial rehabilitation and responsible actions taken to resolve debts.
The applicant's financial difficulties were largely attributed to circumstances beyond her control, specifically a divorce and multiple family deaths. Furthermore, her extensive and unblemished employment history in the defense industry, without any prior security violations, supported the decision to grant the security clearance.
Why the Applicant Prevailed
- The applicant provided compelling evidence of financial rehabilitation and responsible actions taken to resolve debts.
- Circumstances beyond the applicant's control primarily contributed to her financial difficulties, including a divorce and family deaths.
- The applicant has a long history of employment in the defense industry without any security violations.
Conditions Referenced
- 19(a)raisedInability or Unwillingness to Satisfy Debts
- 19(c)raisedA History of Not Meeting Financial Obligations
- 20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
- 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
- 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
Key Rule Quoted
“The adjudicative process is an examination of a sufficient period of a person’s life to make an affirmative determination that the person is an acceptable security risk.”
Procedural Posture
- SOR issuedMar 1, 2015
- Answer filedMar 10, 2015Applicant elected to proceed without a hearing.
- Hearing held—Determined on a written record.
- Decision dateOct 29, 2015
Cite For
- Financial Rehabilitation Under Guideline F
- Impact of Personal Circumstances on Financial Obligations
- Whole-person Assessment in Security Clearance Determinations