Summary
The applicant, a 49-year-old Telecommunications Operator, faced financial issues primarily due to unemployment and poor money management. However, he demonstrated a good faith effort to repay debts and improved his financial management, leading to the granting of his security clearance under Guideline F.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: indebted to a dentist in the approximate amount of $878.00 for an account placed for collection in March 2001 (1.a). indebted to a creditor in the approximate amount of $9,199.57 for the deficiency judgment on an automobile that was repossessed for non-payment in November 2002 (1.b). indebted to a creditor in the approximate amount of $1,836.00 for a delinquent student loan in about October 2003 (1.c). indebted to a bank in the approximate amount of $2,421.00 for a student loan which has been past due since April 2004 (1.d). indebted to a creditor in the approximate amount of $1,145.00 for an account placed for collection in about July 2004 (1.e). indebted to the IRS in the amount of approximately $5,000.00 for tax year 2002 (1.f).
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 due to circumstances beyond his control, including loss of employment; He has made significant efforts to repay creditors and resolve his financial issues; The applicant has shown an improved approach to managing his finances since returning to work.
Why the Applicant Prevailed
- The applicant's financial difficulties were largely due to circumstances beyond his control, including loss of employment.
- He has made significant efforts to repay creditors and resolve his financial issues.
- The applicant has shown an improved approach to managing his finances since returning to work.
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
- 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 issuedMar 18, 2005
- Answer filedMay 15, 2005Notarized on 05/23/2005
- Hearing heldAug 30, 2005
- Decision dateSep 28, 2005
Cite For
- Mitigation of Financial Issues Due to Unemployment Under Guideline F
- Good Faith Efforts to Repay Debts as a Mitigating Factor
- Impact of Personal Circumstances on Financial Responsibility Assessments