Summary
A 43-year-old systems engineer successfully contested the revocation of his security clearance, which was initially challenged under Guideline F (Financial Considerations). The Statement of Reasons cited eight delinquent accounts totaling over $50,000. These included a $7,150 judgment from 2011, which was settled for $4,000 in March 2015, and three other collection accounts of $4,234, $18,745, and $11,128, settled for $1,270, $11,500, and $6,579 respectively, also in March 2015.
Additionally, two medical collection accounts for $144 and $81 were paid in March 2015. A past-due student loan of $1,075, with a balance of $9,218, became current with a balance of $6,324 by April 2015. One collection account of $5,167 remained unresolved.
The judge found that the applicant's good-faith efforts to mitigate his financial issues were sufficient. He had resolved seven of the eight delinquent accounts and presented a reasonable plan to address the remaining one within the next year. These actions demonstrated reliability, trustworthiness, and good judgment, leading to the security clearance being GRANTED.
Why the Applicant Prevailed
- The applicant resolved seven of the eight delinquent accounts, demonstrating a good-faith effort to address his financial issues.
- He presented a reasonable plan to resolve the remaining delinquent account within the next year.
- The applicant's actions indicated reliability, trustworthiness, and good judgment.
Conditions Referenced
- AG ¶ 18raisedFinancial ConsiderationsThe applicant has a history of excessive indebtedness or financial problems.
- AG ¶ 20(b)appliedMitigating ConditionsThe conditions that resulted in the financial problems were largely beyond the applicant's control.
- AG ¶ 20(c)appliedMitigating ConditionsThe applicant has received counseling for the problem and there are clear indications that the problem is being resolved.
- AG ¶ 20(d)appliedMitigating ConditionsThe applicant initiated a good-faith effort to repay overdue creditors or otherwise resolve debts.
Key Rule Quoted
“The concept of a meaningful track record necessarily includes evidence of actual debt reduction through payment of debts.”
Procedural Posture
- SOR issuedDec 3, 2014
- Answer filedDec 29, 2014
- Hearing heldMar 25, 2015
- Decision dateApr 15, 2015Record kept open until this date for additional documentation.
Cite For
- Good-faith Efforts to Resolve Financial Issues Under Guideline F
- Mitigation of Financial Considerations Due to Circumstances Beyond Control
- Establishing a Reasonable Plan for Debt Resolution