Summary
A 51-year-old customer engineer for a defense contractor was granted a security clearance despite concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The Statement of Reasons cited six unpaid debts totaling approximately $14,000, including various credit cards, a collection agency debt, a gasoline card, a jewelry store account, and an emergency room bill. Additionally, the applicant failed to disclose on a January 31, 2003, Security Clearance Application (SF-86) that he had been more than 180 days delinquent on any debt. The applicant stated he did not remember why he answered as he did and was not attempting to conceal information, and the government presented no evidence to the contrary.
Disqualifying conditions related to personal conduct and financial considerations were raised. However, the applicant entered into a debt settlement agreement, which the judge recognized as a good-faith effort to resolve his financial issues.
The judge found no evidence of intentional falsification in the applicant's financial disclosures and concluded that the applicant had mitigated the security concerns related to his financial situation. The applicant's financial situation was deemed manageable through a systematic approach to debt repayment. Based on these findings, the security clearance was granted.
Why the Applicant Prevailed
- The applicant demonstrated a good-faith effort to resolve his unpaid debts through a debt settlement agreement.
- The judge found no evidence of intentional falsification in the applicant's financial disclosures.
- The applicant's financial situation was deemed manageable with a systematic approach to debt repayment.
Conditions Referenced
- E2.A6.1.2.1raisedA History of Not Meeting Financial Obligations
- E2.A6.1.2.3raisedInability or Unwillingness to Satisfy Debts
- E2.A6.1.2.6appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant's agreement with a debt settlement company was considered a good-faith effort to manage his debts.
Key Rule Quoted
“A person's relationship with his creditors is a private matter until evidence is uncovered demonstrating an inability or unwillingness to repay debts under agreed upon terms.”
Procedural Posture
- SOR issuedJun 3, 2004
- Answer filedUndated
- Hearing heldMar 22, 2005
- Decision dateAug 29, 2005
Cite For
- Good-faith Efforts to Resolve Financial Obligations Under Guideline F
- Mitigation of Personal Conduct Concerns When No Intent to Falsify Is Established
- Consideration of Systematic Debt Repayment Plans in Security Clearance Evaluations