Summary
The applicant, a 33-year-old senior analyst for a federal contractor, faced security concerns under Guideline F due to numerous delinquent debts totaling approximately $7,971, attributed to financial indiscipline and depression related to a marital breakup. After taking steps to resolve his debts, including hiring a law firm and enrolling in financial counseling, the applicant mitigated the security concerns, leading to the granting of his security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Vacuum Cleaner $267 Paid, 1-10-06 (1.a). Catalog Store $420 Attempting to find current account holder (1.b). Credit Card $1,013 Settled, 6-7-06 (1.c). Credit Card $1,121 Disputed (1.d). Credit Card $2,165 Settled 8-12-05 (1.e). Credit Card $473 Disputed (1.f). Credit Card $1,819 Settled 6-9-06 (1.g). Education Loan $360 past due Account is current (1.h). Telephone $122 Paid 10-3-05 (1.i). Jewelry Store $211 Settlement pending (1.j).
The judge granted the clearance. The government raised disqualifying conditions E2.A6.1.2.1, E2.A6.1.2.3. The judge applied mitigating conditions E2.A6.1.3.4, E2.A6.1.3.6. The decision turned on the following: The applicant resolved all but two disputed debts, demonstrating a proactive approach to his financial issues; He hired a law firm and utilized an online financial management program to address his debts; The applicant's financial difficulties were largely addressed before the SOR was issued.
Why the applicant prevailed
- The applicant resolved all but two disputed debts, demonstrating a proactive approach to his financial issues.
- He hired a law firm and utilized an online financial management program to address his debts.
- The applicant's financial difficulties were largely addressed before the SOR was issued.
Conditions referenced
- E2.A6.1.2.1raisedDC 1: History of Not Meeting Financial Obligations
- E2.A6.1.2.3raisedDC 3: Inability or Unwillingness to Satisfy Debts
- E2.A6.1.3.4appliedMC 4: Received Counseling and Evidence of Problem Resolution
- E2.A6.1.3.6appliedMC 6: Good-faith Effort to Resolve Debts
Key rule quoted
“"A security concern arising from financial problems can be mitigated by showing a good-faith effort to resolve debts."”
Procedural posture
- SOR issuedSep 8, 2005
- Answer filedOct 3, 2005
- Hearing heldJun 20, 2006Rescheduled from May 23, 2006.
- Decision dateAug 14, 2006
Cite for
- Mitigation of Financial Concerns Under Guideline F
- Good-faith Efforts in Resolving Debts
- Impact of Counseling on Financial Responsibility