Summary
The applicant, a 49-year-old MRP Planner for a defense contractor, faced financial difficulties primarily due to a divorce. Despite a history of financial indebtedness, she demonstrated a good faith effort to repay her creditors and resolve her debts, leading to the granting of her security clearance under Guideline F.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: The Applicant is indebted to a bank in the approximate amount of $12,125.00. The Applicant indicates that she is in the process of negotiating a settlement agreement with the creditor and plans to pay it off soon (1.a). The Applicant was indebted to a bank in the approximate amount of $4,072.00. The Applicant has settled this debt and satisfied it in full (1.b). The Applicant was indebted to a bank in the approximate amount of $524.00. The Applicant has settled this debt and satisfied it in full (1.c). The Applicant was indebted to a bank in the approximate amount of $1,276.00. The Applicant has settled this debt and satisfied it in full (1.d). The Applicant is indebted to a bank in the approximate amount of $1,034.00. The Applicant is in the process of negotiating a settlement with the creditor and plans to pay it off soon (1.e). The Applicant is indebted to a creditor in the approximate amount of $468.00. The Applicant is not responsible for this debt as the divorce decree assigned it to her husband (1.f). The Applicant is indebted to a creditor in the approximate amount of $435.00. The Applicant is not responsible for this debt as the divorce decree assigned it to her husband (1.g). The Applicant is indebted to a creditor in the approximate amount of $2,468.00. The Applicant is not responsible for this debt as the divorce decree assigned it to her husband (1.h). The Applicant is indebted to a creditor in the approximate amount $80.00. This debt is currently in dispute and has not been paid (1.i). The Applicant was indebted to a creditor in the approximate amount of $1,034.00. The Applicant asserts that this is a duplicate of the debt set forth in allegation 1(e) (1.j). The Applicant was indebted to a creditor in the approximate amount of $867.00. The Applicant has settled this debt and satisfied it in full (1.k). The Applicant was indebted to a creditor in the approximate amount of $1,920.00. The Applicant is not responsible for this debt as the divorce decree assigned it to her husband (1.l).
The judge granted the clearance. The government raised disqualifying conditions F.1, F.3. The judge applied mitigating conditions F.3, F.6. The decision turned on the following: The applicant's financial difficulties were largely caused by her divorce, which was beyond her control; She has made significant efforts to repay her creditors and has settled most of her debts; Only two debts remain outstanding, and she is actively negotiating settlements for them.
Why the Applicant Prevailed
- The applicant's financial difficulties were largely caused by her divorce, which was beyond her control.
- She has made significant efforts to repay her creditors and has settled most of her debts.
- Only two debts remain outstanding, and she is actively negotiating settlements for them.
Conditions Referenced
- F.1raisedA History of Not Meeting Financial Obligations
- F.3raisedInability or Unwillingness to Satisfy Debts
- F.3appliedThe Conditions That Resulted in the Behavior Were Largely Beyond the Person's Control (e.g., Loss of Employment, a Business Downturn, Unexpected Medical Emergency, or a Death, Divorce or Separation)
- F.6appliedThe Person Has Initiated a Good Faith Effort to Repay Creditors or Otherwise Resolve Debts
Key Rule Quoted
“The adjudicative process is an examination of a sufficient period of a person's life to make an affirmative determination that the person is an acceptable security risk.”
Procedural Posture
- SOR issuedJun 8, 2004
- Answer filedJun 26, 2004Applicant elected to have the case determined on a written record.
- Hearing held—No hearing; case determined on written record.
- Decision dateFeb 22, 2005
Cite For
- Mitigation of Financial Issues Due to Divorce Under Guideline F
- Good Faith Efforts to Resolve Debts as a Mitigating Factor
- Consideration of Personal Circumstances in Financial Irresponsibility Cases