ISCR Case 18-00498

Case Headnote

ISCR Case No. 18-00498

grantedApr 12, 2019· Hon. Shari Dam· hearing

Summary

A 43-year-old defense contractor was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The Statement of Reasons (SOR) detailed a history of delinquent debts, including a Chapter 7 bankruptcy filed in 2010, and several unpaid medical and other bills. Specific allegations included an outstanding $6,873 automobile loan balance, an unpaid $2,562 cell phone debt, and a $727 medical debt for which the creditor could not be located.

However, the applicant demonstrated significant efforts to resolve her financial issues. She had paid off multiple medical debts, including amounts of $1,120, $809, $637, $130, $56, and $174, with payments occurring between November 2015 and February 2019. An unpaid electric bill of $237 was also resolved. For a $233 medical debt, a payment was made in February 2019, reducing the balance to $180.

The judge found that the applicant had resolved or was actively resolving 11 of the 16 alleged delinquent debts. She also demonstrated a commitment to managing her financial obligations through a budget and payment plans. Her employer supported her security clearance request, indicating no concerns about her reliability. These mitigating factors led to the determination that the applicant demonstrated reliability and trustworthiness, and the security clearance was GRANTED.

Why the Applicant Prevailed

The applicant resolved or is resolving 11 of the 16 delinquent debts alleged in the SOR.
The applicant demonstrated a commitment to managing her financial obligations through a budget and payment plans.
The applicant's employer supported her request for a security clearance, indicating no concerns about her reliability.

Conditions Referenced

Disqualifying

AG ¶ 19(a)raisedInability to Satisfy Debts
AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations

Mitigating

AG ¶ 20(a)appliedBehavior Happened Long Ago or Infrequently
AG ¶ 20(b)appliedConditions Largely Beyond the Person's Control
AG ¶ 20(d)appliedGood-faith Effort to Repay Debts

Key Rule Quoted

“An applicant is not required, as a matter of law, to establish that he has paid off each and every debt listed in the SOR. All that is required is that an applicant demonstrates that he has established a plan to resolve his financial problems and taken significant actions to implement that plan.”
— ISCR Case No. 07-06482 at 2-3) App. Bd. May 21, 2008)

Procedural Posture

SOR issuedMar 27, 2018
Answer filedApr 24, 2018
Hearing heldApr 12, 2019
Decision dateApr 12, 2019

Cite For

Mitigation of Financial Concerns Under Guideline F
Demonstrating Reliability Through Debt Resolution Efforts
Importance of Employer Support in Security Clearance Cases

Editorial summary generated for research. Not legal advice; not a prediction. Verify against the full decision before relying on any quoted language.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	This $6,873 debt is the balance owed to an automobile loan company for a repossessed vehicle after it was sold at an auction Applicant said she voluntarily relinquished the car because she could not afford it. $6,873	For Applicant	Auto Loan Debt	Admitted	—	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts	Claimed Other
1.b	This $1,120 medical debt was paid in November 2015, as documented by Applicant during her September 2017 interview. $1,120	For Applicant	Medical Debt	Admitted	—	—	—
1.c	This $809 medical debt was paid in December 2016, as documented during her September 2017 interview. $809	For Applicant	Medical Debt	Admitted	—	—	—
1.d	This $637 medical debt was paid in January 2018. $637	For Applicant	Medical Debt	Admitted	—	—	—
1.j	The $237 collections account for an unpaid electric bill was paid, as documented during Applicant’s September 2017 interview. $237	For Applicant	Utility or Phone Debt	Admitted	—	—	—
1.k	The $130 medical debt was paid in February 2019. $130	For Applicant	Medical Debt	Admitted	—	—	—
1.l	The $56 medical debt was paid, as documented during Applicant’s September 2017 interview. $56	For Applicant	Medical Debt	Admitted	—	—	—
1.m	This $2,562 cell phone debt is unpaid. Applicant said that she is trying to resolve smaller debts before working on larger debts. $2,562	For Applicant	Unspecified Financial	Admitted	—	—	Claimed Other
1.n	Applicant has been unable to locate the medical creditor for this $727 medical debt. $727	For Applicant	Medical Debt	Unknown	—	—	—
1.o	The $233 medical debt has a balance of $180. Applicant made a payment on the debt in February 2019. $233	For Applicant	Medical Debt	Unknown	—	—	—
1.p	This $174 medical debt was paid in full in December 2018. $174	For Applicant	Medical Debt	Admitted	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

This $6,873 debt is the balance owed to an automobile loan company for a repossessed vehicle after it was sold at an auction Applicant said she voluntarily relinquished the car because she could not afford it.

$6,873

For Applicant

Auto Loan Debt

Admitted

—

(b) conditions largely beyond the person’s control; acted responsibly

(d) good-faith effort to repay or otherwise resolve debts

Claimed

Other

1.b

This $1,120 medical debt was paid in November 2015, as documented by Applicant during her September 2017 interview.

$1,120

For Applicant

Medical Debt

Admitted

—

1.c

This $809 medical debt was paid in December 2016, as documented during her September 2017 interview.

$809

For Applicant

Medical Debt

Admitted

—

1.d

This $637 medical debt was paid in January 2018.

$637

For Applicant

Medical Debt

Admitted

—

1.j

The $237 collections account for an unpaid electric bill was paid, as documented during Applicant’s September 2017 interview.

$237

For Applicant

Utility or Phone Debt

Admitted

—

1.k

The $130 medical debt was paid in February 2019.

$130

For Applicant

Medical Debt

Admitted

—

1.l

The $56 medical debt was paid, as documented during Applicant’s September 2017 interview.

$56

For Applicant

Medical Debt

Admitted

—

1.m

This $2,562 cell phone debt is unpaid. Applicant said that she is trying to resolve smaller debts before working on larger debts.

$2,562

For Applicant

Unspecified Financial

Admitted

—

Claimed

Other

1.n

Applicant has been unable to locate the medical creditor for this $727 medical debt.

$727

For Applicant

Medical Debt

Unknown

—

1.o

The $233 medical debt has a balance of $180. Applicant made a payment on the debt in February 2019.

$233

For Applicant

Medical Debt

Unknown

—

1.p

This $174 medical debt was paid in full in December 2018.

$174

For Applicant

Medical Debt

Admitted

—

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Case Profile

Summary

Why the Applicant Prevailed

Conditions Referenced

Key Rule Quoted

Procedural Posture

Cite For

Full decision

DEFENSE OFFICE OF HEARINGS AND APPEALS

HEARING

APPEARANCES

STATEMENT OF CASE

FINDINGS OF FACT

POLICIES

ANALYSIS

WHOLE PERSON CONCEPT

FORMAL FINDINGS

CONCLUSION