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ISCR Case 21-00741 — CASE

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ISCR Case 21-00741

A decided public DOHA case, shown for research — not advice or a prediction.

Case Profile
Decision Date6/6/2022
Statusdenied
LevelHEARING
TypeSTANDARD ISCR
Participants
Applicant Representation: Pro Se
Judge: Elizabeth M. Matchinski
Government Counsel: Nicole A. Smith
Case Summary
The applicant in this case was a 37-year-old individual seeking a security clearance, which was denied due to financial concerns under Guideline F. The Statement of Reasons (SOR) indicated that the applicant had accumulated significant unpaid debts, totaling approximately $20,704, including charged-off credit card accounts and collection debts. The applicant admitted to these debts but claimed he had been misled by a debt-consolidation program that required him to allow his accounts to become delinquent for settlement negotiations.
The administrative judge found that the applicant had not provided sufficient evidence to mitigate the security concerns related to his financial issues. Although the applicant had made some timely payments on other accounts and expressed regret for his involvement in the debt-relief program, he did not demonstrate a concrete plan to resolve the charged-off debts. The judge noted that the applicant's financial difficulties began in 2019 due to increased living expenses, but his failure to take effective action to address the debts raised concerns about his judgment and reliability. Ultimately, the judge ruled that the applicant did not meet the burden of proof necessary to establish eligibility for a security clearance, leading to a denial of his application.
Guidelines Evaluated
- Guideline FFinancial Considerations · Against Applicant
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Case Headnote

ISCR Case No. 21-00741

deniedJun 6, 2022· Hon. Elizabeth M. Matchinski· hearing

Summary

A 37-year-old applicant with a bachelor's degree was denied a security clearance under Guideline F (Financial Considerations) due to approximately $20,704 in unpaid delinquent debts. The Statement of Reasons detailed $19,599 in charged-off debt across ten credit card accounts and an additional $1,105 in collection debt from two accounts. These issues raised disqualifying conditions under Adjudicative Guidelines Paragraphs 19(a), 19(b), and 19(c).

The applicant acknowledged the debts and attributed some issues to a credit-repair scam. However, the judge found that the applicant failed to present a credible or responsible plan for the repayment or resolution of these outstanding obligations.

Ultimately, the judge concluded that the applicant's financial irresponsibility and ongoing financial issues raised significant concerns regarding his judgment, reliability, and trustworthiness, leading to the denial of the security clearance.

Why the Applicant Was Denied

The applicant admitted to owing approximately $20,704 in delinquent debts, demonstrating a lack of financial responsibility.
He failed to provide a responsible plan for debt repayment or resolution, which is critical for mitigating financial concerns.
The judge emphasized that the applicant's ongoing financial issues raised questions about his judgment and reliability.

Conditions Referenced

Disqualifying

AG ¶ 19(a)appliedInability to Satisfy Debts
AG ¶ 19(c)appliedA History of Not Meeting Financial Obligations
AG ¶ 19(b)appliedUnwillingness to Satisfy Debts Regardless of the Ability to Do So

Key Rule Quoted

“An applicant is not required to be debt free, but is required to manage his or her finances in a way as to exhibit sound judgment and responsibility.”
— ISCR Case No. 11-05365 (App. Bd. May 1, 2012)

Procedural Posture

SOR issuedJul 26, 2021
Answer filedJan 18, 2022
Hearing held—Applicant requested a decision on the written record.
Decision dateJun 6, 2022

Cite For

Denial of Security Clearance Due to Unresolved Delinquent Debts Under Guideline F
Importance of Demonstrating Financial Responsibility for Security Clearance Eligibility
The Necessity of Presenting a Credible Plan for Debt Repayment in Mitigating Financial Concerns

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

Standardized Decision Profile

SEAD-4 Guideline F · descriptive summary of a decided case

Posture: Decision on RecordDecided: denied

The judge found that the applicant had significant financial issues, including $19,599 in charged-off debt on ten credit-card accounts and $1,105 in collection debt on two accounts. Despite the applicant's admission of the debts and claims of financial hardship, the judge ruled against the applicant, citing a history of not meeting financial obligations and an unwillingness to repay charged-off debts.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant owed $19,599 in charged-off debt on ten credit-card accounts $19,699	Against Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.b–1.g	6 sub-charges — specific text not stated in this decision (against the applicant). (low confidence)	Against Applicant			—	—	—
1.h	$1,105 in collection debt on two accounts $1,105	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.i–1.l	4 sub-charges — specific text not stated in this decision (against the applicant). (low confidence)	Against Applicant			—	—	—

Descriptive standardized rendering of a decided public case (Guideline F). The verbatim source decision is shown in full below.

Full decision

The complete, official text — footnotes and signatures included — is in the original PDF.