Summary
The applicant, a 63-year-old defense contractor employee, faced financial issues under Guideline F due to unpaid taxes and a Chapter 13 bankruptcy filing. He demonstrated a good-faith effort to resolve his debts, with significant payments made under the bankruptcy plan and a positive assessment from his employer regarding his reliability. The judge granted the security clearance, finding that the applicant's financial situation had improved and did not pose a security risk.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: filed a voluntary petition for bankruptcy on March 6, 2003. He listed total assets of $131,625.00 ($104,000 of which is a house) and total liabilities of $150, 063.16. As of October 7, 2003, the Chapter 13 repayment plan had not been confirmed. However, on January 21, 2004, the repayment plan was confirmed by the bankruptcy Judge. Between April 2003 and February 2004, Applicant had paid about $12,000 under the approved repayment plan (1.a). was indebted to the Internal Revenue Service for unpaid Federal income taxes for Tax Years (TY) 1995, 1997, 1999, and 2001, in the approximate amount of $6,657.50. This debt is being paid under the Chapter 13 repayment plan (1.b). As of April 4, 2003, had failed to file his State A tax returns for TY 1997, 1998, and 1999. He has filed the late returns and the debt ($745.00) was included in the bankruptcy plan (1.c).
The judge granted the clearance. The government raised disqualifying conditions F.1.a, F.1.c. The judge applied mitigating conditions F.6. The decision turned on the following: The applicant made significant payments under a Chapter 13 bankruptcy repayment plan; The applicant's financial situation had greatly improved over the past few years; The applicant's employer and co-workers provided positive assessments of his reliability.
Why the Applicant Prevailed
- The applicant made significant payments under a Chapter 13 bankruptcy repayment plan.
- The applicant's financial situation had greatly improved over the past few years.
- The applicant's employer and co-workers provided positive assessments of his reliability.
Conditions Referenced
- F.1.araisedHistory of Not Meeting Financial Obligations
- F.1.craisedInability or Unwillingness to Satisfy Debts
- F.6appliedGood Faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
Key Rule Quoted
“An applicant's admission of the information in specific allegations relieves the Government of having to prove those allegations.”
Procedural Posture
- SOR issuedJan 20, 2004
- Answer filedFeb 13, 2004
- Hearing heldMay 11, 2004
- Decision dateAug 30, 2004
Cite For
- Mitigation of Financial Issues Under Guideline F
- Good-faith Efforts in Bankruptcy Cases
- Positive Employer Assessments as a Mitigating Factor