Summary
The applicant, a 35-year-old mechanical engineer, faced security concerns under Guideline F due to 13 delinquent debts. Over the past three years, she demonstrated a commitment to resolving her financial issues by paying off several debts and establishing payment plans for the remaining debts, including student loans. The judge found that the applicant mitigated the financial concerns, leading to a granted security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Bank credit card, $7,993, present amount is $5,540. Judgment. Payment plan in effect of $275 monthly over 3 years (1.a). Electric Utility , $96 disconnection fee. Paid in full March 30, 2004 (1.b). Cell phone company cancellation fee, $100. Paid in full, March 30, 2004 (1.c). Hospital bill, $298. Paid in full, current bill shows zero balance after payment of $297.48 on April 26, 2004 (1.d). Bank credit card, $17,000. Payment plan in effect, with a proposed settlement of $8,644 possible (1.e). Student loan, $3,853. Payment plan in effect at $100 monthly (1.f). Credit card, $1040. Paid in full (1.g). Credit card, $169. Paid in full (1.h). Computer purchase, $1,751. Paid in full (1.i). Bank loan for college, $10,400. Paying $85 monthly, has paid $1000 in past year on principal (1.j). Bank loan for college, $17,600. Paying $185 monthly (1.k). Bank loan for college, $19,600. Working on establishing a payment plan (1.l). Credit card, $8273. Settled for $4408 paid April 1, 2004. Was paying $200 monthly (1.m).
The judge granted the clearance. The government raised disqualifying conditions DC 1, DC 3. The judge applied mitigating conditions MC 1, MC 6. The decision turned on the following: The applicant made significant payments on delinquent debts and established payment plans for remaining debts; She used her savings and her husband's income to address her financial obligations; The applicant's financial issues were not recent, and she demonstrated a good-faith effort to resolve her debts.
Why the Applicant Prevailed
- The applicant made significant payments on delinquent debts and established payment plans for remaining debts.
- She used her savings and her husband's income to address her financial obligations.
- The applicant's financial issues were not recent, and she demonstrated a good-faith effort to resolve her debts.
Conditions Referenced
- DC 1raisedA History of Not Meeting Financial Obligations.
- DC 3raisedInability or Unwillingness to Satisfy Debts.
- MC 1rejectedThe Behavior Was Not Recent.The applicant's financial issues were ongoing and recent.
- MC 6appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts.
Key Rule Quoted
“"[N]o one has a 'right' to a security clearance."”
Procedural Posture
- SOR issuedOct 27, 2003
- Answer filedNov 21, 2003Applicant responded to SOR allegations.
- Hearing heldMar 10, 2004Hearing convened to consider security clearance.
- Decision dateJul 23, 2004
Cite For
- Mitigation of Financial Concerns Under Guideline F
- Good-faith Efforts to Resolve Debts
- Impact of Ongoing Financial Management on Security Clearance Decisions