Summary
The applicant, a 58-year-old security officer employed by a defense contractor, faced financial concerns under Guideline F due to a history of unpaid debts. The applicant successfully mitigated these concerns by discharging debts through bankruptcy and demonstrating improved financial management, including timely payments and establishing a savings account. The judge granted the security clearance based on the applicant's commitment to resolving financial issues and living within her means.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant's remaining debt under her lease agreement, which she did not pay, was $8,284.00 (1.a). In 2000, Applicant opened a credit card account. She incurred a total debt of $4,178.00 on the account that she did not pay (1.b). In 1997, Applicant incurred a debt with a retail business. She became delinquent on the debt and it was assigned to a debt collector. Applicant incurred a total debt of $1,102.00 on the account that she did not pay (1.c). In 1999, Applicant opened a credit card account with a bank. She incurred a total debt of $2,190.00 on the account that she did not pay (1.d). Applicant incurred a $389.00 debt with a loan company that she did not pay (1.e). She incurred a $263.00 debt on an account with a department store that she did not pay (1.f). In 2001, Applicant incurred a $214.00 debt for a satellite television system. She did not pay the debt (1.g). In 2002, Applicant incurred debts of $58.00 and $53.00 for utility services. She did not pay the debts (1.h). On August 1, 2003, Applicant filed a petition for bankruptcy pursuant to chapter 7 of the bankruptcy code. She listed total assets of $32,675.00 and total liabilities of $45,274.17 (1.i).
The judge granted the clearance. The government raised disqualifying conditions E2.A6.1.2.1, E2.A6.1.2.3. The judge applied mitigating conditions E2.A6.1.3.3, E2.A6.1.3.6. The decision turned on the following: The applicant resolved all delinquent debts through a discharge in bankruptcy; The applicant's financial difficulties were largely due to circumstances beyond her control, including wrongful termination and family responsibilities; The applicant is currently meeting her financial obligations and living within her means.
Why the applicant prevailed
- The applicant resolved all delinquent debts through a discharge in bankruptcy.
- The applicant's financial difficulties were largely due to circumstances beyond her control, including wrongful termination and family responsibilities.
- The applicant is currently meeting her financial obligations and living within her means.
Conditions referenced
- E2.A6.1.2.1raisedHistory of Not Meeting Financial Obligations
- E2.A6.1.2.3raisedInability or Unwillingness to Satisfy Debts
- E2.A6.1.3.3appliedConditions That Resulted in the Behavior Were Largely Beyond the Person's Control
- E2.A6.1.3.6appliedIndividual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
Key rule quoted
“Any doubt as to whether access to classified information is clearly consistent with national security will be resolved in favor of national security.”
Procedural posture
- SOR issuedOct 15, 2003
- Answer filedNov 13, 2003
- Hearing heldApr 27, 2004
- Decision dateDec 14, 2004
Cite for
- Mitigation of Financial Concerns Under Guideline F
- Impact of Wrongful Termination on Financial Stability
- Importance of Demonstrating Financial Responsibility Post-bankruptcy