ISCR Case 21-00737

Case Headnote

ISCR Case No. 21-00737

deniedDec 13, 2022· Hon. Robert E. Coacher· hearing

Summary

A 48-year-old federal contractor employee was denied a security clearance under Guideline F (Financial Considerations) due to 12 delinquent debts totaling approximately $42,476. The Statement of Reasons detailed several specific debts, including a deficiency balance from a voluntarily surrendered car, an unexpired lease from 2017, and multiple medical debts incurred in 2017 when the applicant lacked insurance.

While the applicant admitted to these debts and made some payments, such as semi-regular payments on certain medical accounts and two $10 payments on another, the majority remained unresolved. Some medical debts were settled with collection companies in August and September 2022, and one was resolved with a creditor in February 2022. However, one medical debt was overlooked, with the applicant stating an intention to contact the creditor.

Ultimately, the denial was based on the applicant's failure to demonstrate timely resolution of debts or responsible financial management. The payments made were deemed insufficient and untimely, leading to concerns about the applicant's reliability and trustworthiness.

Why the Applicant Was Denied

The applicant had 12 delinquent debts totaling approximately $42,476, with the majority unresolved.
The applicant did not demonstrate timely resolution of debts or responsible financial management.
Payments made towards debts were insufficient and not timely, raising concerns about the applicant's reliability and trustworthiness.

Conditions Referenced

Disqualifying

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

Mitigating

AG ¶ 20(a)rejectedBehavior Happened Long Ago or InfrequentlyThe applicant's debts are recent and ongoing.
AG ¶ 20(b)rejectedConditions Beyond the Person's ControlWhile some circumstances were beyond the applicant's control, she did not act responsibly regarding her debts.
AG ¶ 20(c)rejectedReceived Financial CounselingThe applicant presented no evidence of financial counseling.
AG ¶ 20(d)appliedGood-faith Effort to Repay DebtsOnly applied to resolved debts, not the majority of unresolved debts.
AG ¶ 20(e)rejectedDispute Legitimacy of DebtsThe applicant did not provide documentation to support her claims regarding her debts.

Key Rule Quoted

“The protection of the national security is the paramount consideration.”

Procedural Posture

SOR issuedJun 18, 2021
Answer filed—
Hearing heldAug 24, 2022via video teleconferencing
Decision dateDec 13, 2022

Cite For

Denial of Security Clearance Due to Unresolved Financial Issues Under Guideline F
Insufficient Evidence of Responsible Financial Management
Impact of Financial Distress on Security Clearance Eligibility

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	Applicant incurred 12 delinquent debts, with the highest-balanced accounts remaining unpaid. $42,476	Against Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	—
1.b	Applicant admitted this debt resulting from the deficiency balance owed after the voluntary surrender and sale of Applicant’s car. $10,314	Against Applicant	Auto Loan Debt	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	—
1.c	Applicant incurred this unexpired-lease debt when she vacated an apartment before the lease was up in 2017 because of health concerns. $4,000	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	—
1.d	Applicant incurred this debt as a result of 2017 surgery when she was without insurance coverage. $3,259	Against Applicant	Medical Debt	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	—
1.e	Applicant admitted these medical debts and documented making semi-regular payments on these accounts. $1,285	For Applicant	Medical Debt	Admitted	—	(b) conditions largely beyond the person’s control; acted responsibly	Documented Debt Paid in Full
1.f	specific text not stated in this decision $250	Unknown	Unspecified Financial	Denied	—	—	—
1.g	Applicant admitted this medical debt and stated that she overlooked this debt and indicated that she would reach out to the creditor to start making monthly payments. $248	Against Applicant	Medical Debt	Admitted	—	—	—
1.h	Applicant admitted this medical debt and documented making two $10 payments in June 2020. $1,944	Against Applicant	Medical Debt	Admitted	—	—	—
1.i	Applicant admitted this medical debt and documented settling the debt with a successor-collection company in September 2022. $1,306	For Applicant	Medical Debt	Admitted	—	(b) conditions largely beyond the person’s control; acted responsibly	Documented Debt Paid in Full
1.j	Applicant admitted this medical debt and documented settling the debt with a successor-collection company in August 2022. $834	For Applicant	Medical Debt	Admitted	—	(b) conditions largely beyond the person’s control; acted responsibly	Documented Debt Paid in Full
1.k	Applicant admitted this medical debt and documented resolving the debt with the creditor in February 2022. $683	For Applicant	Medical Debt	Admitted	—	(b) conditions largely beyond the person’s control; acted responsibly	Documented Debt Paid in Full
1.l	specific text not stated in this decision	Unknown	Unspecified Financial	Unknown	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant incurred 12 delinquent debts, with the highest-balanced accounts remaining unpaid.

$42,476

Against Applicant

Unspecified Financial

Unknown

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

—

1.b

Applicant admitted this debt resulting from the deficiency balance owed after the voluntary surrender and sale of Applicant’s car.

$10,314

Against Applicant

Auto Loan Debt

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

—

1.c

Applicant incurred this unexpired-lease debt when she vacated an apartment before the lease was up in 2017 because of health concerns.

$4,000

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

—

1.d

Applicant incurred this debt as a result of 2017 surgery when she was without insurance coverage.

$3,259

Against Applicant

Medical Debt

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

—

1.e

Applicant admitted these medical debts and documented making semi-regular payments on these accounts.

$1,285

For Applicant

Medical Debt

Admitted

—

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

Documented

Debt Paid in Full

1.f

specific text not stated in this decision

$250

Unknown

Unspecified Financial

Denied

—

1.g

Applicant admitted this medical debt and stated that she overlooked this debt and indicated that she would reach out to the creditor to start making monthly payments.

$248

Against Applicant

Medical Debt

Admitted

—

1.h

Applicant admitted this medical debt and documented making two $10 payments in June 2020.

$1,944

Against Applicant

Medical Debt

Admitted

—

1.i

Applicant admitted this medical debt and documented settling the debt with a successor-collection company in September 2022.

$1,306

For Applicant

Medical Debt

Admitted

—

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

Documented

Debt Paid in Full

1.j

Applicant admitted this medical debt and documented settling the debt with a successor-collection company in August 2022.

$834

For Applicant

Medical Debt

Admitted

—

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

Documented

Debt Paid in Full

1.k

Applicant admitted this medical debt and documented resolving the debt with the creditor in February 2022.

$683

For Applicant

Medical Debt

Admitted

—

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

Documented

Debt Paid in Full

1.l

specific text not stated in this decision

Unknown

Unspecified Financial

Unknown

—

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Summary

Why the Applicant Was Denied

Conditions Referenced

Key Rule Quoted

Procedural Posture

Cite For

Full decision