Summary
A 61-year-old security guard employed by a defense contractor was granted a security clearance despite financial considerations under Guideline F. The applicant faced allegations of owing 12 creditors a total of $62,006 from a business failure in 1992. This debt stemmed from the applicant and her husband using personal credit cards to try and save the business starting in 1990, with the husband later attempting to file bankruptcy but being unable to afford the legal fees. They still intend to file bankruptcy, believing there is no reasonable way to pay the outstanding debt.
The judge found that the conditions leading to the debts were largely beyond the applicant's control, citing a recession, lack of snowfall impacting the business, and the applicant's inexperience. While the husband admitted to recklessly using credit cards to pay other credit cards, the record showed no illegal financial practices or other habits contributing to the debt or raising security concerns. All listed debts were charged off by March 1993, with no indication of new debts or attempts to start a similar business since then.
The applicant provided documentation from five creditors showing no deficiencies or late payments on current obligations. Her favorable credibility persuaded the judge that she was willing but unable to pay the older debts. Given the circumstances beyond her control, her credible efforts to manage current finances, and a consistent payment history, the security clearance was granted.
Why the applicant prevailed
- The applicant's financial issues were primarily due to circumstances beyond her control, including economic downturns and lack of snowfall.
- The applicant demonstrated credible efforts to manage her current financial obligations, with no recent debts or deficiencies reported.
- The applicant's favorable credibility and consistent payment history contributed to the decision.
Conditions referenced
- F1raisedHistory of Not Meeting Financial Obligations
- F2raisedInability to Satisfy Debts
- F3appliedThe Behavior Was Not Recent
- F4appliedThe Conditions That Resulted in the Behavior Were Largely Beyond the Person's Control
- F5appliedThere Are Clear Indications the Problem Is Under Control
- F6appliedThe Individual Has Made Good-faith Efforts to Resolve Debts
Key rule quoted
“The granting (or continuance) of a security clearance under this Directive may only be done upon a finding that to do so is clearly consistent with the national interest.”
Procedural posture
- SOR issuedApr 11, 1997
- Answer filedMay 12, 1997
- Hearing heldJul 23, 1997
- Decision dateOct 17, 1997
Cite for
- Mitigating Factors Under Guideline F Related to Financial Considerations
- Impact of Economic Conditions on Financial Obligations
- Credibility of Applicant in Financial Matters