Summary
The applicant, a 39-year-old information system security officer, sought to retain her security clearance under Guideline F due to financial considerations stemming from a divorce and wrongful termination. The judge found that the applicant had taken significant steps to resolve her debts, including working with a financial counselor and making payments on her obligations, leading to a favorable decision.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Mortgage foreclosure deficiency balance in the amount of $100,704. Home sold in 2008/2009 and Applicant’s latest credit reports reflect a zero balance owed. DEBT RESOLVED (1.a). Department of Education collection accounts for student loans in the amount of $20,369. DEBTS BEING RESOLVED (1.b). Department of Education collection accounts for student loans in the amount of $15,080. DEBTS BEING RESOLVED (1.c). Department of Education collection accounts for student loans in the amount of $13,930. DEBTS BEING RESOLVED (1.d). Department of Education collection accounts for student loans in the amount of $13,130. DEBTS BEING RESOLVED (1.e). Department of Education collection accounts for student loans in the amount of $11,753. DEBTS BEING RESOLVED (1.f). Department of Education collection accounts for student loans in the amount of $9,678. DEBTS BEING RESOLVED (1.g). Department of Education collection accounts for student loans in the amount of $5,391. DEBTS BEING RESOLVED (1.h). Department of Education collection accounts for student loans in the amount of $3,919. DEBTS BEING RESOLVED (1.i). Charged-off credit card account in the amount of $3,315. DEBT BEING RESOLVED (1.j). Charged-off credit card account in the amount of $1,023. DEBT BEING RESOLVED (1.k). Charged-off credit card account in the amount of $842. DEBT BEING RESOLVED (1.l). Credit card collection account in the amount of $709. DEBT BEING RESOLVED (1.m). Credit card collection account in the amount of $582. DEBT BEING RESOLVED (1.n). Past-due medical bill in the amount of $539. DEBT BEING RESOLVED (1.o). Charged-off credit card account in the amount of $6,652. DEBT RESOLVED (1.p). Collection credit card account in the amount of $11,263. DEBT BEING RESOLVED (1.q). Collection cable company account in the amount of $63. DEBT RESOLVED (1.r).
The judge granted the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d), AG ¶ 20(e). The decision turned on the following: The applicant demonstrated a proactive approach to resolving her financial issues by retaining a financial counselor and following their recommendations; Most of the debts listed in the SOR were either resolved or in the process of being resolved, showing a commitment to financial responsibility; The applicant's character references and ongoing employment in the defense industry supported her reliability and trustworthiness.
Why the Applicant Prevailed
- The applicant demonstrated a proactive approach to resolving her financial issues by retaining a financial counselor and following their recommendations.
- Most of the debts listed in the SOR were either resolved or in the process of being resolved, showing a commitment to financial responsibility.
- The applicant's character references and ongoing employment in the defense industry supported her reliability and trustworthiness.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
- AG ¶ 20(c)appliedThe Person Has Received or Is Receiving Counseling for the Problem
- AG ¶ 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
- AG ¶ 20(e)appliedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due Debt
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the adjudicative guidelines.”
Procedural Posture
- SOR issuedJan 28, 2015
- Answer filedFeb 19, 2015
- Hearing heldMay 28, 2015
- Decision dateNov 3, 2015
Cite For
- Mitigation of Financial Issues Under Guideline F
- Importance of Proactive Financial Management in Security Clearance Cases
- Consideration of Personal Circumstances Affecting Financial Stability