ISCR Case ADP Case No. 18-00628

Case Headnote

ISCR Case No. ADP Case No. 18-00628

grantedJan 9, 2019· Hon. Robert Robinson Gales· hearing

Summary

This DOHA security clearance decision involved a 59-year-old defense contractor employee seeking eligibility for a public trust position, with financial considerations (Guideline F) being the primary concern. The Statement of Reasons detailed multiple outstanding debts totaling approximately $71,303. These included a home mortgage with an unpaid balance of $68,868, of which $18,534 was past-due and in foreclosure, along with several credit card accounts, bank charge accounts, and other unspecified accounts that were placed for collection or charged off. A state tax lien for $1,205 and smaller cellular telephone and medical accounts were also cited.

Disqualifying conditions under Guideline F were raised due to these financial issues. However, the applicant demonstrated significant mitigating factors. They actively sought financial counseling, established, and adhered to repayment plans for multiple debts, and showed a commitment to resolving their financial obligations.

The administrative judge found that the applicant's actions indicated a strong commitment to financial responsibility and that their financial situation had improved significantly. Consequently, the applicant's eligibility for a public trust position was GRANTED.

Why the Applicant Prevailed

The applicant actively sought financial counseling and engaged in debt resolution efforts.
The applicant established and adhered to repayment plans for multiple debts.
The applicant's financial situation improved significantly, demonstrating responsible management of finances.

Conditions Referenced

Disqualifying

AG ¶ 19(a)raisedInability to Satisfy Debts
AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
AG ¶ 19(b)rejectedUnwillingness to Satisfy Debts Regardless of Ability to Do SoThere is no evidence that the applicant had the ability to pay his debts but was unwilling to do so.
AG ¶ 19(f)notedFailure to File or Fraudulently Filing Annual Federal, State, or Local Income Tax Returns

Mitigating

AG ¶ 20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
AG ¶ 20(c)appliedReceiving Financial Counseling From a Legitimate Source
AG ¶ 20(d)appliedInitiated and Adhered to a Good-faith Effort to Repay Overdue Creditors
AG ¶ 20(a)appliedBehavior Happened so Long Ago or Occurred Under Circumstances Unlikely to Recur

Key Rule Quoted

“Trustworthiness decisions are aimed at evaluating an applicant’s judgment, reliability, and trustworthiness. They are not a debt-collection procedure.”

Procedural Posture

SOR issuedMar 12, 2018
Answer filedApr 4, 2018Applicant initially elected to have the case decided on the written record.
Hearing heldJul 23, 2018Hearing convened as scheduled.
Decision dateJan 9, 2019

Cite For

Mitigation of Financial Concerns Under Guideline F
Demonstrating a Good-faith Effort to Resolve Debts
Impact of Financial Counseling on Trustworthiness Determinations

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 is a conventional home mortgage with a high credit of $100,000 and an unpaid balance of $68,868, of which $18,534 was past-due, which was placed for collection and entered into a foreclosure status. $68,868	For Applicant	Mortgage or Home Loan Debt	Admitted	—	—	Claimed Debt Paid in Full
1.b	This is a credit-card account with an unpaid balance of $24,275, and a past-due balance of $8,606, that was placed for collection and charged off. $24,275	For Applicant	Credit Card Debt	Admitted	—	—	Claimed Debt Paid in Full
1.c	This is a bank-issued credit-card account with an unpaid and past-due balance of $10,091 that was placed for collection and charged off. $10,091	For Applicant	Credit Card Debt	Admitted	—	—	Claimed Debt Paid in Full
1.d	These are two bank-issued credit-card accounts with unpaid balances of $5,948 and $3,997 that were placed for collection and charged off. $5,938	For Applicant	Credit Card Debt	Admitted	—	—	Claimed Debt Paid in Full
1.f	This is a bank-issued charge account with an unpaid balance of $3,230 that was placed for collection. $3,230	For Applicant	Credit Card Debt	Admitted	—	—	Claimed Debt Paid in Full
1.g	This is an unspecified type of account with an unpaid and past-due balance of $1,615 that was placed for collection and charged off. $1,615	For Applicant	Unspecified Financial	Unknown	—	—	—
1.h	This is an unspecified type of bank account with an unpaid balance of $1,066 that was placed for collection. $1,066	For Applicant	Unspecified Financial	Unknown	—	—	—
1.i	This is a bank-issued charge account with an unpaid balance of $1,015 that was placed for collection and sold to a debt purchaser. $1,015	For Applicant	Credit Card Debt	Unknown	—	—	—
1.j	This is a state tax lien in the amount of $1,205 that was filed in 2016, and placed for collection. $1,205	For Applicant	Tax Unpaid	Unknown	—	—	—
1.k	This is a cellular telephone account with an unpaid balance of $175 that was placed for collection. $175	For Applicant	Utility or Phone Debt	Unknown	—	—	—
1.l	This is a medical account with an unpaid balance of $152 that was placed for collection. $152	For Applicant	Medical Debt	Unknown	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

This is a conventional home mortgage with a high credit of $100,000 and an unpaid balance of $68,868, of which $18,534 was past-due, which was placed for collection and entered into a foreclosure status.

$68,868

For Applicant

Mortgage or Home Loan Debt

Admitted

—

Claimed

Debt Paid in Full

1.b

This is a credit-card account with an unpaid balance of $24,275, and a past-due balance of $8,606, that was placed for collection and charged off.

$24,275

For Applicant

Credit Card Debt

Admitted

—

Claimed

Debt Paid in Full

1.c

This is a bank-issued credit-card account with an unpaid and past-due balance of $10,091 that was placed for collection and charged off.

$10,091

For Applicant

Credit Card Debt

Admitted

—

Claimed

Debt Paid in Full

1.d

These are two bank-issued credit-card accounts with unpaid balances of $5,948 and $3,997 that were placed for collection and charged off.

$5,938

For Applicant

Credit Card Debt

Admitted

—

Claimed

Debt Paid in Full

1.f

This is a bank-issued charge account with an unpaid balance of $3,230 that was placed for collection.

$3,230

For Applicant

Credit Card Debt

Admitted

—

Claimed

Debt Paid in Full

1.g

This is an unspecified type of account with an unpaid and past-due balance of $1,615 that was placed for collection and charged off.

$1,615

For Applicant

Unspecified Financial

Unknown

—

1.h

This is an unspecified type of bank account with an unpaid balance of $1,066 that was placed for collection.

$1,066

For Applicant

Unspecified Financial

Unknown

—

1.i

This is a bank-issued charge account with an unpaid balance of $1,015 that was placed for collection and sold to a debt purchaser.

$1,015

For Applicant

Credit Card Debt

Unknown

—

1.j

This is a state tax lien in the amount of $1,205 that was filed in 2016, and placed for collection.

$1,205

For Applicant

Tax Unpaid

Unknown

—

1.k

This is a cellular telephone account with an unpaid balance of $175 that was placed for collection.

$175

For Applicant

Utility or Phone Debt

Unknown

—

1.l

This is a medical account with an unpaid balance of $152 that was placed for collection.

$152

For Applicant

Medical Debt

Unknown

—

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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