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ISCR Case 21-02362 — CASE

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ISCR Case 21-02362

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

Case Profile
Decision Date9/1/2022
Statusgranted
LevelHEARING
TypeSTANDARD ISCR
Participants
Applicant Representation: Pro Se
Judge: Elizabeth M. Matchinski
Government Counsel: Rhett E. Petcher
Case Summary
The applicant in this case was a 32-year-old high school graduate employed as a Class A machinist for a defense contractor. The Defense Office of Hearings and Appeals (DOHA) reviewed his application for a security clearance under Guideline F, which pertains to financial considerations. The Statement of Reasons (SOR) alleged that the applicant had defaulted on multiple debts, including two car loans, three credit card accounts, and unpaid rent for an apartment he vacated before the lease ended.
During the proceedings, the applicant admitted to incurring the debts but claimed to have made arrangements to resolve some of them after receiving the SOR. He acknowledged that he had been unable to maintain payments on the car loans due to increased expenses following the birth of his first child. The applicant provided evidence of his efforts to settle debts and indicated that his spouse's part-time employment would assist in resuming payments.
The administrative judge ruled in favor of the applicant, granting him security clearance eligibility. The judge concluded that the applicant had made significant efforts to address his financial issues, including settling several debts and establishing repayment plans. The judge noted the applicant's improved financial situation and responsible financial decisions moving forward, which contributed to the determination that granting clearance was consistent with national security interests.
Guidelines Evaluated
- Guideline FFinancial Considerations · For Applicant
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Case Headnote

ISCR Case No. 21-02362

grantedSep 1, 2022· Hon. Elizabeth M. Matchinski· hearing

Summary

A 32-year-old defense contractor was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The Statement of Reasons detailed several defaulted debts, including two car loans, three credit card accounts, and rent owed from an early lease termination. Specific allegations included credit card balances in collections totaling $614, $300, and $437, a $25 medical collection debt, and a $55 charged-off utility account. Additionally, the applicant owed $2,105 for repossessed vehicle loans and $3,956 in collection debt from a former landlord.

Disqualifying conditions under Adjudicative Guidelines Paragraphs 19(a) and 19(c) were raised due to these financial issues. However, mitigating conditions under Paragraphs 20(b) and 20(d) were applied.

The clearance was granted because the applicant made efforts to resolve some debts after receiving the Statement of Reasons. His financial situation improved with his spouse's new part-time job, and he demonstrated a commitment to financial responsibility by adhering to repayment plans.

Why the Applicant Prevailed

The applicant made efforts to resolve some debts after receiving the Statement of Reasons.
The applicant's financial situation improved with his spouse's new part-time job.
The applicant demonstrated a commitment to financial responsibility by adhering to repayment plans.

Conditions Referenced

Disqualifying

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

Mitigating

AG ¶ 20(b)appliedConditions Largely Beyond the Person's ControlThe applicant's financial difficulties were exacerbated by job loss and increased living expenses.
AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue CreditorsThe applicant initiated repayment plans for his debts after receiving the SOR.

Key Rule Quoted

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

Procedural Posture

SOR issuedNov 15, 2021
Answer filedNov 30, 2021
Hearing heldJun 28, 2022via video teleconference
Decision dateSep 1, 2022

Cite For

Mitigating Conditions Under Guideline F for Financial Considerations
Commitment to Financial Responsibility in Security Clearance Cases
Impact of Family Financial Changes on Debt Repayment Obligations

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: HearingDecided: granted

The judge found that the applicant had multiple financial delinquencies, including credit card debts, medical debts, and car loans. However, the applicant demonstrated efforts to address these debts and showed improvement in his financial situation, leading to a decision in favor of the applicant.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant defaulted on some debts, including two car loans, three credit-card accounts, and the rent owed for an apartment he vacated before the end of his lease term. $19,045	For Applicant	Auto Loan Debt	Admitted	—	—	Claimed Debt Paid in Full Claimed Payment Plan with Creditor
1.b	Applicant owed $614 in credit-card balances in collections. $614	For Applicant	Credit Card Debt	Admitted	—	—	Claimed Debt Paid in Full
1.c	Applicant owed $300 in credit-card balances in collections. $300	For Applicant	Credit Card Debt	Admitted	—	—	Claimed Debt Paid in Full
1.d	Applicant owed $437 in credit-card balances in collections. $437	For Applicant	Credit Card Debt	Admitted	—	—	Claimed Debt Paid in Full
1.e	Applicant owed $25 in medical collection debt. $25	For Applicant	Medical Debt	Admitted	—	—	Claimed Debt Paid in Full
1.f	Applicant owed $55 on a charged-off utility account. $55	For Applicant	Utility or Phone Debt	Admitted	—	—	Claimed Debt Paid in Full
1.g	Applicant owed $2,105 on loans for repossessed vehicles. $2,105	For Applicant	Auto Loan Debt	Admitted	—	—	Claimed Payment Plan with Creditor
1.h	Applicant owed $3,956 in collection debt placed by a former landlord. $3,956	For Applicant	Unspecified Financial	Admitted	—	—	Claimed Payment Plan with Creditor

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

Full decision

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