Security Clearance Debt Concerns & Solutions (Part 2) By Jeff Burch
Posted on Sat, Dec 24, 2011
Previous Article - Part 1
Part 2. What "patterns" adjudicators look for in a Personal Security Investigation (PSI):
Adjudicators follow the "whole-person" concept and look for "patterns" of irresponsibility in a PSI. A bankruptcy or foreclosure can be considered a non-issue if the financial crisis stemmed largely from circumstances beyond the subject's control and is unlikely to recur or the subject acted in a reasonable and responsible manner.
Example: If a subject has never had financial problems in the past, but got into trouble with a lender because his/her home is currently worth less than the mortgage loan due to a market downturn, and then (gulp) received PCS orders, this would tend to be considered a mitigating condition. However, if a subject going through foreclosure has a prior history of not meeting financial obligations documented in previous investigations, this suggests a pattern of financial irresponsibility that cannot be easily brushed aside. Likewise, a soldier who obtained a loan by overstating income or committed other types of loan fraud may find it difficult to convince the adjudicators that he/she was just an innocent victim of circumstances beyond their control.
Adjudicators understand that financial problems often arise due to situations beyond the investigation subject's control, such as serious illness/disability, divorce, loss of income, crime, business downturn, and natural disasters. Again, if a person acts reasonably and responsibly under the circumstances (including bankruptcy, when necessary) to resolve their debts, the financial issue can be mitigated. The debts do not have to be fully resolved at the time of adjudication, but there should be "verifiable uninterrupted efforts" toward this goal. Response to debt is evaluated by the things people do (or don't do) about delinquent debt. How people deal with delinquent debt is often a decisive consideration, because it is viewed by adjudicators as an indication of their trustworthiness and reliability. Those who disregard their financial obligations may also disregard their responsibility to safeguard classified information. The following is a list of common indicators of irresponsibility and unethical behavior:
• Changing address without notifying creditors
• Failure to take reasonable measures to pay or reduce debts
• Knowingly issuing bad checks
• Increased credit card use immediately before filing for bankruptcy
Security Clearance Debt Concerns & Solutions by Jeff Burch will continue tomorrow on the Trans World Assurance Blog with Part 3 - Solutions and assistance that can mitigate financial concerns.