Summary
A 30-year-old defense contractor employee was granted a security clearance despite concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The applicant's financial history included a Chapter 7 bankruptcy filing in July 1998, which discharged over $50,000 in liabilities by December 1998. This bankruptcy included debts to multiple creditors, such as a $459 balance on a repossessed vehicle, $258 for utility bill arrearages, $59 for an unknown item, and $1,273 for furniture.
Beyond the bankruptcy, the applicant also addressed other financial obligations. He admitted to a $384 child support arrearage, which was paid through payroll deduction via State #1 courts. He acknowledged a $2,700 debt to a bank, incurred by his wife. Additionally, he fully paid a $428 debt to a dentist in February 2005 and settled two credit card debts: one for $866, settled for $570 in June 2004, and another for $353, settled for $253 in March 2005.
The clearance was granted because the applicant demonstrated a good-faith effort to resolve all his debts, showing financial responsibility. He also exhibited substantial maturity and reformed his character and conduct since his past issues. Furthermore, he maintained a stable job and was highly regarded by his employer.
Why the Applicant Prevailed
- The applicant made a good-faith effort to resolve all his debts, demonstrating financial responsibility.
- He has shown substantial maturity and reformed his character and conduct since his past issues.
- The applicant has a stable job and is highly regarded by his employer.
Conditions Referenced
- E2.A5.1.2.5raisedPattern of Dishonesty or Rule Violations
- F.3raisedInability or Unwillingness to Satisfy Debts
- F.3appliedConditions Largely Beyond the Person's ControlThe applicant faced significant personal challenges, including unemployment and divorce.
- F.6appliedGood-faith Effort to Repay DebtsThe applicant resolved all but one debt and demonstrated a plan for financial stability.
- E2.A6.1.3.4appliedClear Indications That the Problem Is Being ResolvedThe applicant has shown substantial behavioral changes and maturity.
Key Rule Quoted
“The responsibility for producing evidence initially falls on the Government to demonstrate that it is not clearly consistent with the national interest to grant or continue Applicant's access to classified information.”
Procedural Posture
- SOR issuedMay 25, 2004
- Answer filedJun 14, 2004
- Hearing heldMar 15, 2005in a city near where Applicant lives and works
- Decision dateAug 5, 2005
Cite For
- Mitigation of Financial Issues Under Guideline F Due to Good-faith Efforts
- Reform of Character and Conduct Under Guideline E
- Impact of Personal Circumstances on Security Clearance Decisions