Summary
A 64-year-old retired U.S. Navy lieutenant commander, employed as a defense contractor, was granted a security clearance despite concerns under Guideline F (Financial Considerations). The Statement of Reasons detailed several financial issues, including a past-due mortgage loan of approximately $33,056, a charged-off home-equity line of credit for $115,313, a delinquent credit card account charged off for about $11,213, and a charged-off furniture installment account for approximately $1,266. Additionally, the applicant filed for Chapter 13 bankruptcy in May 2015.
Disqualifying conditions under Guideline F were raised, specifically regarding a history of not meeting financial obligations and an inability or unwillingness to satisfy debts. However, the judge applied mitigating conditions, noting that the financial problems were largely due to circumstances beyond the applicant's control, that he had initiated a good-faith effort to resolve the debts, and that he had received financial counseling.
The decision to grant the clearance was based on the finding that the applicant's financial difficulties stemmed primarily from his divorce. He demonstrated responsible financial behavior by making consistent payments under his Chapter 13 bankruptcy plan for over a year and completed required financial counseling, providing clear evidence that his financial problems are now under control.
Why the Applicant Prevailed
- The applicant's financial difficulties were primarily due to circumstances beyond his control, specifically his divorce.
- He has made consistent payments under his Chapter 13 bankruptcy plan for over a year, demonstrating responsible financial behavior.
- The applicant completed required financial counseling and has shown clear evidence that his financial problems are under control.
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 And/or There Are Clear Indications That the Problem Is Being Resolved or Is Under Control
- AG ¶ 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the AG.”
Procedural Posture
- SOR issuedAug 27, 2015
- Answer filedSep 15, 2015
- Hearing heldMar 24, 2016
- Decision dateJun 20, 2016
Cite For
- Mitigating Conditions Under Guideline F Related to Financial Difficulties Due to Divorce
- Responsible Financial Behavior Demonstrated Through Chapter 13 Bankruptcy
- Consideration of the Whole-person Concept in Security Clearance Determinations