Summary
A 44-year-old network administrative operator for a DOD contractor was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The Statement of Reasons detailed several financial issues, including a 2003 bankruptcy filing, failure to file federal income tax returns for 2011 through 2013, and outstanding federal tax debts of $4,223 for 2009 and $293 for 2010. Additional debts included $17,822 for a voluntarily returned car, a $331 cell phone debt, and two other debts of $84 and $246.
Disqualifying conditions F.19(a), F.19(c), and F.19(g) were raised. However, the judge applied mitigating conditions F.20(b), F.20(c), F.20(d), and F.20(e), noting the applicant's significant efforts to address his financial problems.
The applicant demonstrated a good-faith effort to resolve overdue debts, established payment plans for his obligations, and provided evidence of a reasonable budget that covers expenses and includes debt repayments. The judge found that many of the financial issues stemmed from circumstances beyond the applicant's control, such as medical expenses and a problematic agreement with a friend. Based on these mitigating factors and the applicant's proactive steps, the security clearance was granted.
Why the Applicant Prevailed
- The applicant demonstrated a good-faith effort to resolve overdue debts and established payment plans for his financial obligations.
- He provided evidence of a reasonable budget that covers his expenses and includes debt repayments.
- The applicant's financial issues were largely due to circumstances beyond his control, such as medical expenses and a problematic agreement with a friend.
Conditions Referenced
- F.19(a)raisedInability or Unwillingness to Satisfy Debts
- F.19(c)raisedA History of Not Meeting Financial Obligations
- F.19(g)raisedFailure to File Annual Federal, State, or Local Income Tax Returns as Required
- F.20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
- F.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
- F.20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
- F.20(e)appliedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due Debt
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedNov 24, 2014
- Answer filedDec 22, 2014
- Hearing heldMar 26, 2015
- Decision dateMay 12, 2015
Cite For
- Mitigation of Financial Issues Under Guideline F
- Good-faith Efforts to Resolve Debts
- Impact of Circumstances Beyond Control on Financial Obligations