ISCR Case 21-02625

Case Headnote

ISCR Case No. 21-02625

grantedAug 2, 2022· Hon. Darlene Lokey Anderson· hearing

Summary

A 55-year-old aerospace industry professional was granted a security clearance under Guideline F (Financial Considerations) despite admitting to over $113,000 in debts. The applicant's financial difficulties stemmed primarily from job loss during the COVID-19 pandemic.

The Statement of Reasons detailed nine specific debts. These included a voluntarily repossessed Lincoln Continental, settled for $16,125 from an approximate $26,875 owed; a credit card co-signed for his daughter, resolved for an approximate $3,811; and another credit card debt of approximately $3,321. Other resolved debts included a cellular phone bill for approximately $1,884, a charged-off Kia deficiency of approximately $1,302, and an $820 medical co-pay. Additionally, the applicant settled a Ford F-150 truck debt for $21,000 from an approximate $21,315 owed, a Hyundai Santa Fe SUV debt for $15,340 from $19,177, and a Kia Hyundai debt for $24,600 from a total balance of $34,692.

The clearance was granted because the applicant successfully resolved all delinquent debts through loans and responsible financial management. The decision noted that his financial issues were largely beyond his control due to job loss, and he has since returned to stable employment, demonstrating a commitment to financial responsibility and good judgment.

Why the Applicant Prevailed

The applicant resolved all delinquent debts totaling over $113,000 through loans and responsible financial management.
He demonstrated a commitment to financial responsibility and good judgment after experiencing job loss due to COVID-19.
The applicant's financial issues were largely beyond his control, and he has since returned to stable employment.

Conditions Referenced

Disqualifying

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

Mitigating

AG ¶ 20(a)appliedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
AG ¶ 20(b)appliedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
AG ¶ 20(d)appliedThe Individual Initiated and Is Adhering to a Good Faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts

Key Rule Quoted

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

Procedural Posture

SOR issuedDec 13, 2021
Answer filedJan 7, 2022
Hearing heldJun 8, 2022
Decision dateAug 2, 2022

Cite For

Mitigation of Financial Issues Under Guideline F Due to Job Loss
Demonstrating Good Judgment and Reliability in Financial Management
Impact of COVID-19 on Financial Stability and 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 was indebted to a creditor for an account that was charged off in the approximate amount of $26,875. This was his wife’s Lincoln Continental. Applicant purchased it between 2018 and 2019. He spent $80,000 on the car, with monthly payment of $1,200. When he became unemployed, he could no longer afford to make the car payments. The car was voluntarily repossessed. The account was settled for 60% of what was owed. Applicant paid $16,125 to resolve the debt. $26,875	For Applicant	Auto Loan Debt	Admitted	—	(b) conditions largely beyond the person’s control; acted responsibly	Documented Debt Paid in Full
1.b	Applicant was indebted to a creditor for an account that was placed for collection in the approximate amount of $3,811. This was a credit card that Applicant co-signed for his daughter. Applicant provided a copy of a Satisfaction of Judgement and related documents showing that the debt has been paid. Applicant has resolved the debt. $3,811	For Applicant	Credit Card Debt	Admitted	—	(b) conditions largely beyond the person’s control; acted responsibly	Documented Debt Paid in Full
1.c	Applicant was indebted to a creditor for account that was placed for collection in the approximate amount of $3,321. This was a credit card. Documentation to substantiate payment of the debt is set forth in Applicant’s Exhibit B. Applicant has resolved the debt. $3,321	For Applicant	Credit Card Debt	Admitted	—	(b) conditions largely beyond the person’s control; acted responsibly	Documented Debt Paid in Full
1.d	Applicant was indebted to a creditor for an account that was placed for collection in the approximate amount of $1,884. This was a cellular phone bill from T-Mobile. Documentation to substantiate payment of this debt is set forth in Applicant’s Exhibit D. Applicant has resolved the debt. $1,884	For Applicant	Utility or Phone Debt	Admitted	—	(b) conditions largely beyond the person’s control; acted responsibly	Documented Debt Paid in Full
1.e	Applicant was indebted to a creditor for a account that was charged off in the approximate amount of $1,302. This was a Kia that was 'a lemon' and was returned to the dealer. The deficiency when they sold it was owed by the Applicant. Documentation to substantiate payment of this debt is set forth in Applicant’s Exhibit E. Applicant has resolved the debt. $1,302	For Applicant	Auto Loan Debt	Admitted	—	(b) conditions largely beyond the person’s control; acted responsibly	Documented Debt Paid in Full
1.f	Applicant was indebted to a creditor for a medical account that was placed for collection in the approximate amount of $820. This was a co-pay for an emergency room visit. Applicant has paid the debt in full. $820	For Applicant	Medical Debt	Admitted	—	(b) conditions largely beyond the person’s control; acted responsibly	Documented Debt Paid in Full
1.g	Applicant was indebted to a creditor for an account that was charged off in the approximate amount of $21,315. This is for the purchase of Applicant’s F-150 truck. Applicant was sued by Ford Motor Company for breach of contract when he could no longer afford to make payments on the account. The account was settled for $21,000. Documentation to substantiate payment of this debt is set forth in Applicant’s Exhibit G. Applicant has resolved this debt. $21,315	For Applicant	Auto Loan Debt	Admitted	—	(b) conditions largely beyond the person’s control; acted responsibly	Documented Debt Paid in Full
1.h	Applicant was indebted to a creditor for an account that was placed for collection in the amount of $19,177. This is for the purchase of a Hyundai Santa Fe SUV, a vehicle that Applicant purchased for his son who has a special needs child. The account was settled for $15,340. Documentation to substantiate payment of this debt is set forth in Applicant’s Exhibit H. $19,177	For Applicant	Auto Loan Debt	Admitted	—	(b) conditions largely beyond the person’s control; acted responsibly	Documented Debt Paid in Full
1.i	Applicant was indebted to a creditor for an account that was past due in the amount of $4,725, with a total balance of $34,692. This is for the purchase of a Kia Hyundai. The account was settled for $24,600. Documentation to substantiate payment of this debt is set forth in Applicant’s Exhibit I. $4,725	For Applicant	Auto Loan Debt	Admitted	—	(b) conditions largely beyond the person’s control; acted responsibly	Documented Debt Paid in Full

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant was indebted to a creditor for an account that was charged off in the approximate amount of $26,875. This was his wife’s Lincoln Continental. Applicant purchased it between 2018 and 2019. He spent $80,000 on the car, with monthly payment of $1,200. When he became unemployed, he could no longer afford to make the car payments. The car was voluntarily repossessed. The account was settled for 60% of what was owed. Applicant paid $16,125 to resolve the debt.

$26,875

For Applicant

Auto Loan Debt

Admitted

—

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

Documented

Debt Paid in Full

1.b

Applicant was indebted to a creditor for an account that was placed for collection in the approximate amount of $3,811. This was a credit card that Applicant co-signed for his daughter. Applicant provided a copy of a Satisfaction of Judgement and related documents showing that the debt has been paid. Applicant has resolved the debt.

$3,811

For Applicant

Credit Card Debt

Admitted

—

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

Documented

Debt Paid in Full

1.c

Applicant was indebted to a creditor for account that was placed for collection in the approximate amount of $3,321. This was a credit card. Documentation to substantiate payment of the debt is set forth in Applicant’s Exhibit B. Applicant has resolved the debt.

$3,321

For Applicant

Credit Card Debt

Admitted

—

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

Documented

Debt Paid in Full

1.d

Applicant was indebted to a creditor for an account that was placed for collection in the approximate amount of $1,884. This was a cellular phone bill from T-Mobile. Documentation to substantiate payment of this debt is set forth in Applicant’s Exhibit D. Applicant has resolved the debt.

$1,884

For Applicant

Utility or Phone Debt

Admitted

—

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

Documented

Debt Paid in Full

1.e

Applicant was indebted to a creditor for a account that was charged off in the approximate amount of $1,302. This was a Kia that was 'a lemon' and was returned to the dealer. The deficiency when they sold it was owed by the Applicant. Documentation to substantiate payment of this debt is set forth in Applicant’s Exhibit E. Applicant has resolved the debt.

$1,302

For Applicant

Auto Loan Debt

Admitted

—

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

Documented

Debt Paid in Full

1.f

Applicant was indebted to a creditor for a medical account that was placed for collection in the approximate amount of $820. This was a co-pay for an emergency room visit. Applicant has paid the debt in full.

$820

For Applicant

Medical Debt

Admitted

—

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

Documented

Debt Paid in Full

1.g

Applicant was indebted to a creditor for an account that was charged off in the approximate amount of $21,315. This is for the purchase of Applicant’s F-150 truck. Applicant was sued by Ford Motor Company for breach of contract when he could no longer afford to make payments on the account. The account was settled for $21,000. Documentation to substantiate payment of this debt is set forth in Applicant’s Exhibit G. Applicant has resolved this debt.

$21,315

For Applicant

Auto Loan Debt

Admitted

—

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

Documented

Debt Paid in Full

1.h

Applicant was indebted to a creditor for an account that was placed for collection in the amount of $19,177. This is for the purchase of a Hyundai Santa Fe SUV, a vehicle that Applicant purchased for his son who has a special needs child. The account was settled for $15,340. Documentation to substantiate payment of this debt is set forth in Applicant’s Exhibit H.

$19,177

For Applicant

Auto Loan Debt

Admitted

—

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

Documented

Debt Paid in Full

1.i

Applicant was indebted to a creditor for an account that was past due in the amount of $4,725, with a total balance of $34,692. This is for the purchase of a Kia Hyundai. The account was settled for $24,600. Documentation to substantiate payment of this debt is set forth in Applicant’s Exhibit I.

$4,725

For Applicant

Auto Loan Debt

Admitted

—

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

Documented

Debt Paid in Full

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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