Summary
The applicant, a 48-year-old former federal contractor, faced security concerns under Guideline F due to a history of financial difficulties stemming from living beyond his means during marriage, a divorce, and subsequent unemployment. Despite not being debt-free, he demonstrated a good faith effort to repay debts and sought credit counseling, leading to the granting of his security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Judgment for damages, due to a car accident by his former wife. Current balance approximately $500 (1.a). Judgment for medical expense for $729. Paid (1.b). Credit card debt, $1,925. Divorce decree makes wife responsible for this debt. Not responsible (1.c). Applicant's wife's vehicle totaled in accident. Owed $6,203. Sold to collection. Paid (1.d). Phone services debt, charged off, owed $120. Paid (1.e). Phone services debt, charged off, owed $469. Paid (1.f). Arrearage for child support. Owed $1,738. Paid $100/week from paycheck to cover arrearage on back support. No current child support due. Current arrearage balance $217. Will be paid off soon (1.g). Phone service, collection, owed $194. Paid. No final letter provided (1.h).
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.A6.1.3.3, E2.A6.1.3.5, E2.A6.1.3.6. The decision turned on the following: The applicant has shown a good faith effort to repay his debts despite financial hardships; He has been actively working with a credit counselor for three years to manage his debts; The circumstances leading to his financial issues were largely beyond his control, including divorce and unemployment.
Why the Applicant Prevailed
- The applicant has shown a good faith effort to repay his debts despite financial hardships.
- He has been actively working with a credit counselor for three years to manage his debts.
- The circumstances leading to his financial issues were largely beyond his control, including divorce and unemployment.
Conditions Referenced
- E2.A6.1.2.1raisedA History of Not Meeting Financial Obligations
- E2.A6.1.2.3raisedInability or Unwillingness to Satisfy Debts
- E2.A6.1.3.3appliedThe Conditions That Resulted in the Behavior Were Largely Beyond the Person's Control
- E2.A6.1.3.5appliedThe Person Has Received or Is Receiving Counseling for the Problem and There Are Clear Indications That the Problem Is Being Resolved or Is Under Control
- E2.A6.1.3.6appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
Key Rule Quoted
“The sole purpose of a security clearance determination is to decide if it is clearly consistent with the national interest to grant or continue a security clearance for an applicant.”
Procedural Posture
- SOR issuedFeb 6, 2006
- Answer filedMar 13, 2006
- Hearing heldNov 2, 2006
- Decision dateNov 30, 2006
Cite For
- Good Faith Effort to Repay Debts Under Guideline F
- Impact of Personal Circumstances on Financial Obligations
- Importance of Credit Counseling in Mitigating Financial Concerns