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ISCR Case 22-01036 — CASE

Case record

ISCR Case 22-01036

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

Case Profile
Decision Date9/21/2023
Statusdenied
LevelHEARING
TypeSTANDARD ISCR
Participants
Applicant Representation: Pro Se
Judge: Richard A. Cefola
Government Counsel: Gatha L. Manns
Case Summary
The applicant, a 47-year-old married man with one minor child, served honorably in the U.S. Air Force for approximately ten years and has been employed by a federal contractor since November 2021. The Department of Defense (DOD) issued a Statement of Reasons (SOR) citing security concerns under Guideline F, related to financial considerations. The SOR detailed the applicant's history of financial difficulties, including a Chapter 13 bankruptcy that was converted to Chapter 7, and multiple past-due automobile debts totaling over $64,000.
In his response to the SOR, the applicant admitted to several financial issues, including the bankruptcy and the existence of significant past-due debts, but he provided limited explanations or evidence of efforts to resolve these debts. He denied some medical debts and disputed a couple of smaller debts without substantiating his claims. The administrative judge found that the applicant's financial problems were not mitigated by any of the potential mitigating factors, as he failed to demonstrate responsible actions to address his debts or provide evidence supporting his disputes.
The administrative judge ruled against the applicant, concluding that he did not meet the burden of proof to mitigate the financial concerns raised in the SOR. The judge emphasized that the applicant's unresolved debts raised significant questions about his reliability and trustworthiness, ultimately determining that granting him security clearance was not consistent with national security interests. Consequently, the applicant's request for a security clearance was denied.
Guidelines Evaluated
- Guideline FFinancial Considerations · Against Applicant
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Case Headnote

ISCR Case No. 22-01036

deniedSep 21, 2023· Hon. Richard A. Cefola· hearing

Summary

A 47-year-old married man with one minor child was denied a security clearance due to significant financial concerns under Guideline F. The Statement of Reasons detailed several financial issues, including a Chapter 13 Bankruptcy filing in February 2009, which was dismissed in April 2009 and converted to a Chapter 7 Bankruptcy in May 2009. His debts were subsequently discharged in October 2010.

Beyond the bankruptcy, the applicant admitted to three separate past-due automobile debts: approximately $33,590 to Creditor B following a vehicle repossession, about $18,364 to Creditor C, and roughly $12,577 to Creditor D. Additionally, the applicant denied four medical debts totaling approximately $1,122 and disputed two past-due debts to Creditor F, amounting to $480 and $141, respectively, but provided no supporting evidence for these denials or disputes.

The administrative judge determined that the applicant failed to mitigate the financial concerns raised, specifically noting the admitted bankruptcy and the unresolved multiple past-due automobile debts. Consequently, the security clearance was denied.

Why the Applicant Was Denied

The applicant admitted to filing for Chapter 13 Bankruptcy, which was dismissed and converted to Chapter 7 Bankruptcy shortly thereafter.
The applicant has multiple past-due automobile debts that were not resolved or mitigated.

Conditions Referenced

Disqualifying

AG ¶ 19raisedFinancial Considerations

Procedural Posture

SOR issuedAug 26, 2022
Answer filedOct 17, 2022
Hearing held—Decision made without a hearing.
Decision dateSep 21, 2023

Cite For

Failure to Mitigate Financial Issues Under Guideline F
Impact of Bankruptcy on Security Clearance Eligibility
Importance of Financial Responsibility in Security Clearance Determinations

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 multiple financial concerns under Guideline F, including a history of bankruptcy and several past-due automobile debts. The applicant's claims of disputes and mitigating circumstances were not substantiated, leading to a decision against the applicant on all allegations.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant admits that he filed for the protection of a Chapter 13 Bankruptcy in February of 2009, which was dismissed in April of 2009, and converted to a Chapter 7 Bankruptcy in May of 2009. His debts were discharged in October of 2010.	Against Applicant	Bankruptcy Filing	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.b	Applicant admits that he has a past-due automobile debt to Creditor B in the amount of about $33,590, as the result of a repossession of his vehicle. $33,590	Against Applicant	Auto Loan Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.c	Applicant admits that he has another past-due automobile debt to Creditor C in the amount of about $18,364. $18,364	Against Applicant	Auto Loan Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.d	Applicant admits that he has third past-due automobile debt to Creditor D in the amount of about $12,577. $12,577	Against Applicant	Auto Loan Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.e	Applicant denies four medical debts totaling about $1,122, but offers nothing in support of his denial. $1,122	Against Applicant	Medical Debt	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.f	Applicant denies and disputes a $480 past-due debt to Creditor F. $480	Against Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.g	Applicant denies and disputes a $141 past-due debt to Creditor F. $141	Against Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—

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.