Summary
The applicant, a 55-year-old administrative assistant for a defense contractor, faced financial issues primarily due to her husband's medical problems and job loss. Despite admitting to financial irresponsibility, she demonstrated a good-faith effort to resolve her debts through a Debt Management Program, leading to a favorable decision for her security clearance under Guideline F.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: A delinquent debt owed to a bank on a mortgage account went into foreclosure, the deficiency balance on the house was $225,488 (1.a). A delinquent debt owed to a bank on a home equity account in the amount of $34,792 was charged off by the creditor (1.b). A delinquent credit card account in the amount of $13,005 was charged off by the creditor (1.c). A delinquent credit card account in the amount of $7,953 was charged off by the creditor (1.d). A delinquent debt owed to a creditor in the amount of $7,850 was placed in collections (1.e). A delinquent debt owed to a creditor in the amount of $4,872 was charged off by the creditor (1.f). A delinquent debt owed to a creditor in the amount of $3,081 was charged off by the creditor (1.g). A delinquent debt owed to a creditor in the amount of $1,655 has been placed in collections (1.h). A judgment was filed against the Applicant in April 2010, for a delinquent credit card debt in the amount of $14,605 (1.i). A delinquent debt owed to a bank in the amount of $8,520 has been charged off by the creditor (1.j). A delinquent debt owed to a bank in the amount of $1,374 was placed in collections (1.k). A delinquent debt owed to a creditor in the amount of $9,051 has been placed in collections (1.l).
The judge granted the clearance. The government raised disqualifying conditions 19(a), 19(c). The judge applied mitigating conditions 20(b), 20(c), 20(d). The decision turned on the following: The applicant's financial problems were largely beyond her control due to her husband's medical issues and job loss; She has been making consistent payments through a Debt Management Program without missing any payments for five years; The applicant demonstrated clear evidence of financial rehabilitation and a commitment to resolving her debts.
Why the applicant prevailed
- The applicant's financial problems were largely beyond her control due to her husband's medical issues and job loss.
- She has been making consistent payments through a Debt Management Program without missing any payments for five years.
- The applicant demonstrated clear evidence of financial rehabilitation and a commitment to resolving her debts.
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 issuedDec 16, 2014
- Answer filedJan 13, 2015
- Hearing heldMay 20, 2015via video-teleconference
- Decision dateJun 30, 2015
Cite for
- Mitigating Conditions for Financial Issues Under Guideline F
- Good-faith Efforts in Debt Repayment
- Impact of Personal Circumstances on Financial Responsibility