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ISCR Case 21-02813 — CASE

Case record

ISCR Case 21-02813

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

Case Profile
Decision Date8/10/2023
Statusgranted
LevelHEARING
TypeSTANDARD ISCR
Participants
Applicant Representation: Pro Se
Judge: Braden M. Murphy
Government Counsel: Brian L. Farrell
Case Summary
The applicant in this case was a 44-year-old retired U.S. Army sergeant first class who sought a security clearance after a history of financial difficulties, including multiple bankruptcies and delinquent debts. The Defense Counterintelligence and Security Agency issued a Statement of Reasons (SOR) citing concerns under Guideline F (financial considerations), detailing her financial issues stemming from a Chapter 13 bankruptcy filed in 2016, which was dismissed in 2021, and a subsequent bankruptcy filed in October 2022.
During the proceedings, the applicant admitted to the allegations in the SOR, including her bankruptcies and delinquent debts, but provided evidence of her efforts to resolve these issues. She demonstrated a commitment to managing her finances by making regular payments under her ongoing bankruptcy plan and participating in credit counseling. The applicant explained that her financial difficulties were exacerbated by the need to maintain two households and a reduction in income after her husband's military transfer.
The administrative judge ruled in favor of the applicant, granting her eligibility for access to classified information. The judge concluded that the applicant had sufficiently mitigated the financial concerns by establishing a track record of good faith through consistent payments into her bankruptcy plan and by demonstrating a commitment to resolving her debts. The judge noted that all debts were being addressed and that the applicant had taken proactive steps to improve her financial situation.
Guidelines Evaluated
- Guideline FFinancial Considerations · For Applicant
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Case Headnote

ISCR Case No. 21-02813

grantedAug 10, 2023· Hon. Braden M. Murphy· hearing

Summary

A 44-year-old retired Army sergeant first class was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The Statement of Reasons cited a history of bankruptcies and delinquent debts, specifically noting a Chapter 13 bankruptcy filed in 2016 that was dismissed in 2021 due to an uncompleted payment plan, and a new Chapter 13 petition filed in October 2022. These issues raised disqualifying conditions AG ¶ 19(a) and AG ¶ 19(c).

However, the administrative judge applied mitigating conditions AG ¶ 20(c) and AG ¶ 20(d). The applicant demonstrated significant efforts to resolve her financial issues through ongoing Chapter 13 bankruptcy filings. She showed good faith by making regular monthly payments and participating in financial counseling.

Ultimately, the judge determined that her debts were under control and actively being resolved. Based on these mitigating factors, the applicant was granted eligibility for access to classified information.

Why the Applicant Prevailed

The applicant made significant efforts to resolve her financial issues through ongoing Chapter 13 bankruptcy filings.
She demonstrated good faith by making regular monthly payments and participating in financial counseling.
The judge found that her debts were under control and being resolved.

Conditions Referenced

Disqualifying

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

Mitigating

AG ¶ 20(c)appliedReceived Financial Counseling
AG ¶ 20(d)appliedGood-faith Effort to Repay Debts

Key Rule Quoted

“Failure to live within one's means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual's reliability, trustworthiness, and ability to protect classified or sensitive information.”
— AG ¶ 18

Procedural Posture

SOR issuedDec 20, 2021
Answer filed—Applicant initially waived her right to a hearing.
Hearing heldJun 1, 2023Conducted via video-teleconference.
Decision dateAug 10, 2023

Cite For

Mitigation of Financial Concerns Under Guideline F
Good Faith Efforts in Bankruptcy Proceedings
Impact of Financial Counseling 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.

Standardized Decision Profile

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

Posture: HearingDecided: granted

The judge found that the applicant has a history of bankruptcies and delinquent debts, including a Chapter 13 bankruptcy filed in 2016 that was dismissed in 2021 and a subsequent Chapter 13 bankruptcy filed in October 2022. Despite these financial issues, the judge ruled in favor of the applicant, crediting her efforts to resolve her debts and her significant payments made towards her previous bankruptcy plan.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant has a history of bankruptcies and delinquent debts.	For Applicant	Unspecified Financial	Admitted	—	—	—
1.b	Applicant filed Chapter 13 bankruptcy in 2016 and was unable to complete the payment plan, leading to dismissal in 2021.	For Applicant	Bankruptcy Filing	Admitted	—	—	—
1.l	Applicant filed a voluntary petition in Chapter 13 bankruptcy in October 2022.	For Applicant	Bankruptcy Filing	Admitted	—	—	—

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.