Summary
A 55-year-old configuration data analyst for a defense contractor was granted a security clearance despite concerns under Guideline F (Financial Considerations). The applicant's financial history included three bankruptcies: one in 1975 following a divorce and unemployment, another Chapter 7 filing in 2000 after a second divorce, and a Chapter 13 filing in 2003 to address approximately $9,492.99 in unsecured debt. These issues raised disqualifying conditions under Adjudicative Guidelines ¶ 19(a) and ¶ 19(c).
However, the applicant demonstrated substantial financial rehabilitation. She had held a security clearance for 25 years without incident and timely repaid half of her Chapter 13 bankruptcy obligations within three years. Furthermore, she significantly reduced her available credit and currently has no unmanageable debt, indicating a commitment to living frugally and maintaining a good payment history.
These mitigating factors, specifically Adjudicative Guidelines ¶ 20(b), ¶ 20(c), and ¶ 20(d), outweighed the past financial concerns, leading to the granting of her security clearance.
Why the Applicant Prevailed
- The applicant has held a security clearance for 25 years without incident.
- She timely repaid half of her Chapter 13 bankruptcy obligations within three years.
- The applicant has significantly reduced her available credit and has no unmanageable debt.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)appliedThe Conditions That Resulted in the Behavior Were Largely Beyond the Person's Control
- AG ¶ 20(c)appliedThe Person Has Received or Is Receiving Counseling for the Problem
- AG ¶ 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
Key Rule Quoted
“Failure or an inability to live within one's means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual's reliability, trustworthiness and ability to protect classified information.”
Procedural Posture
- SOR issuedSep 29, 2006
- Answer filedOct 12, 2006Applicant elected to have the case decided on the written record.
- Hearing held—No hearing was held.
- Decision dateDec 27, 2006
Cite For
- Mitigation of Financial Concerns Under Guideline F
- Consideration of Personal Circumstances Affecting Financial Behavior
- Evidence of Financial Rehabilitation Leading to Clearance Approval