Summary
A 41-year-old military service member and federal contractor was granted a security clearance despite concerns under Guideline F (Financial Considerations). The applicant faced allegations regarding six delinquent debts, totaling approximately $25,818, which began to become delinquent around 2013. These financial difficulties were attributed to a $10,000 reduction in civilian pay and a decrease in military specialty pay in 2013, followed by a divorce in 2014 where he assumed all joint marital debt.
In response to these challenges, the applicant filed for Chapter 7 bankruptcy in March 2015, with his debts discharged in June 2015. Although the debts were not resolved prior to the bankruptcy filing, the judge found that the applicant had made a good-faith effort to address his financial issues.
The decision to grant the clearance was based on several mitigating factors. The applicant's financial difficulties were largely due to circumstances beyond his control, and he demonstrated responsible actions in resolving his debts through bankruptcy. He is now living within his means and has no outstanding debts, leading to the determination that his security clearance should be granted.
Why the Applicant Prevailed
- The applicant demonstrated a good-faith effort to resolve his financial issues through a debt consolidation plan and bankruptcy.
- The applicant's financial difficulties were largely due to circumstances beyond his control, including a reduction in pay and divorce.
- The applicant is now living within his means and has no outstanding debts.
Conditions Referenced
- F.1.araisedInability or Unwillingness to Satisfy Debts
- F.1.craisedA History of Not Meeting Financial Obligations
- F.2.bappliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
- F.2.cappliedThe 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.2.dappliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedJul 24, 2015
- Answer filedSep 30, 2015Applicant elected to have case decided on written record.
- Hearing held—Decision based on written record.
- Decision dateFeb 17, 2016
Cite For
- Mitigation of Financial Issues Under Guideline F Due to Circumstances Beyond Control
- Good-faith Efforts to Resolve Debts Through Bankruptcy
- Whole-person Concept Applied in Financial Considerations Cases