SF85P and mis-reported debt and tax installment agreements

I’ve been working on a temporary authorization at a non-DOD government agency in a contract position that requires a Public Trust-Moderate clearance. I filled out SF-85P in 10/17, they ran credit in 11/17, was contacted for an interview in 3/18 which didn’t happen until 6/18 because the investigator had to be re-assigned for logistical reasons.

A few years back, I had financial hardship with reduced income that made it difficult to meet my financial obligations. I am self employed (contractor) and in 2014 and 2016 I underpaid taxes over the course of the year and also filed late. To mitigate that, I obtained an IRS installment agreement to take care of those obligations and am paying on time and regularly through auto bank EFT withdrawal. I reported this information on the SF-85P and also clarified it in the interview.

Also during my financial hardship in those years several of my credit card accounts went delinquent, some went to collections, etc. I’d worked out payment plans with each of them and they are all now $0. My credit shows that they were charge offs that went to collection, but also correctly reflect $0 balance.

On my SF-85P I listed on additional credit card delinquency of ~$15,000 that’s not paid yet. I had confused it with another one that I thought I had an ongoing payment plan, when in reality it was paid and this one is still outstanding. So I felt like a deer in headlights when I was genuinely confused in the interview about this. I told the investigator that I believe I made an error, and that this debt is in fact correct and that I need to contact the creditor to resolve it. She said that I would need to update her on the mitigation of this debt. I have since contacted the bank and worked out a settlement that I will have completed within 2 months. I let the investigator know this in a follow up call. She agreed that despite my financial issues, I show a pattern of honoring and settling my debts as far as she sees in the reporting and interview.

I’ve been at this govt. agency doing my job since October when the SF-85P was submitted and i was given an authorization to work. I’m not waiting for clearance to get paid, and I also filled out the OF-306 form back in 10/17, answering the questions truthfully to the best of my knowledge.

At this point, I’m told the investigator will submit the investigation paperwork to a reviewer, which will then go onto an adjudicator.

The $15000 delinquency/debt is the only major black mark on my credit (sans the older delinquencies that have been paid in full to $0 balance). My taxes, while underpaid and still owed to the government, have been mitigated with an installment plan to the IRS. My financial shortcomings were, as I noted, due to financial hardship with reduced income in those years. It wasn’t a matter of me being irresponsible or trying to skirt debt obligations. I am a little concerned how that $15,000 delinquency will go over with the adjudicator. As I said, I have a plan in place with the creditor to pay it down so I’m hoping they look upon that mitigating factor favorably.

I guess my other question is how long will it be before I may hear something (further questions, denial, approval)? What is the current timeline of processing an SF-85P from the time it gets handed over from the investigator?

Bumping for any possible replies. This one fell down the list a bit without any feedback.

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The truth is that nobody can answer your question about how long it will take . . . Every case is different.

Does it sound like you should have a problem getting a public trust? No, it doesn’t. Even with the $15k that you are still working I suspect that you will be fine if the hardship is documented and valid.