Summary
A 28-year-old employee of a U.S. government subcontractor was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The Statement of Reasons detailed approximately $8,500 in past due debts, including a $385 judgment from August 1996, four accounts totaling $956 referred to collection agencies, and a $618 debt with no payments since April 1999. Additionally, $7,108 in unpaid amounts had been charged off as bad debts by other creditors, including a $3,490 loan for her husband's attorney fees and a $1,952 deficiency balance from a voluntarily surrendered automobile.
Disqualifying conditions related to financial issues were raised, but the applicant successfully applied several mitigating conditions. Her financial difficulties were largely attributed to low wages and marital difficulties, factors deemed beyond her control.
The applicant demonstrated good-faith efforts to resolve her debts through recent payments and improved financial management. Most debts had been written off by creditors and no longer appeared on her credit report. Her increased salary and ability to finance her own home further indicated responsible financial management. Consequently, the judge determined her trustworthiness and granted the security clearance.
Why the applicant prevailed
- The applicant mitigated approximately $8,500 of past due debts through recent payments and improved financial practices.
- Most debts have been written off by creditors and no longer appear on her credit report.
- The applicant's increased salary and ability to finance her own home indicate responsible financial management.
Conditions referenced
- DC #1raisedA History of Not Meeting Financial Obligations
- DC #3raisedInability or Unwillingness to Satisfy Debts
- MC #1appliedThe Conditions That Resulted in the Behavior Were Largely Beyond the Person's Control
- MC #3appliedThe Behavior Was Not Recent; It Was an Isolated Incident
- MC #6appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
Key rule quoted
“Each clearance decision must take into consideration pertinent factors set forth in Section 6.3 of the Directive and in the adjudicative process discussion at enclosure 2 to the Directive.”
Procedural posture
- SOR issuedDec 20, 2000
- Answer filedFeb 1, 2001Applicant waived a hearing.
- Hearing held—No hearing was held.
- Decision dateJun 22, 2001
Cite for
- Mitigation of Financial Issues Under Guideline F
- Good-faith Efforts to Resolve Debts
- Impact of Personal Circumstances on Financial Obligations