ISCR Case 24-00270

Case Headnote

ISCR Case No. 24-00270

grantedDec 2, 2025· Hon. Darlene Lokey Anderson· hearing

Summary

This case concerns a 43-year-old electrical engineer with a Bachelor's degree whose security clearance eligibility was reviewed under Guideline F (Financial Considerations). Allegations included a $70,468 delinquent car loan co-signed for his sister in July 2022, a $309 charged-off electricity bill, and a failure to timely file federal income tax returns for tax years 2015 through at least 2022. Additionally, the applicant filed for Chapter 7 Bankruptcy in 2011, with approximately $138,871.68 in liabilities related to a mortgage account.

Despite these financial issues, the applicant demonstrated substantial mitigating efforts. These included making good faith efforts to resolve delinquent debts through payment plans and filing all overdue tax returns. The applicant's financial situation had significantly improved, marked by a stable income and savings.

Ultimately, the applicant demonstrated an understanding of the importance of financial responsibility in relation to security clearance. Based on these mitigating factors and the applicant's efforts to resolve past financial issues, eligibility for access to classified information was GRANTED.

Why the Applicant Prevailed

The applicant made a good faith effort to resolve delinquent debts and file overdue tax returns.
The applicant's financial situation improved significantly, with a stable income and savings.
The applicant demonstrated understanding of the importance of financial responsibility in relation to security clearance.

Conditions Referenced

Disqualifying

AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
AG ¶ 19(b)raisedUnwillingness to Satisfy Debts Regardless of the Ability to Do So
AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
AG ¶ 19(f)raisedFailure to File or Fraudulently Filing Annual Federal, State, or Local Income Tax Returns

Mitigating

AG ¶ 20(a)appliedBehavior Happened so Long Ago, Was Infrequent, or Occurred Under Circumstances Unlikely to Recur
AG ¶ 20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
AG ¶ 20(d)appliedIndividual Initiated and Is Adhering to a Good Faith Effort to Repay Overdue Creditors
AG ¶ 20(g)appliedIndividual Has Made Arrangements with the Appropriate Tax Authority to File or Pay the Amount Owed

Key Rule Quoted

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

Procedural Posture

SOR issuedJul 9, 2024
Answer filed—Date uncertain
Hearing heldSep 25, 2025
Decision dateDec 2, 2025

Cite For

Mitigation of Financial Considerations Under Guideline F
Good Faith Efforts to Resolve Debts
Importance of Financial Responsibility in Security Clearance Evaluations

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 is indebted to a creditor for a delinquent debt in the amount of $70,468 that was charged off. This was a car loan that Applicant co-signed for his sister in July 2022. $70,468	For Applicant	Auto Loan Debt	Admitted	—	(b) conditions largely beyond the person’s control; acted responsibly	Documented Payment Plan with Creditor
1.c	Applicant is indebted to a creditor for a delinquent debt in the amount of $309 that was charged off. This was Applicant’s electricity bill that arrived at his credit union after he had switched accounts to another bank. $309	For Applicant	Utility or Phone Debt	Admitted	—	—	Documented Debt Paid in Full
1.g	Applicant failed to timely file his Federal income tax returns for tax years 2015 through at least 2022.	For Applicant	Tax Filing Failure	Admitted	—	—	Claimed Financial Counseling
1.i	Applicant filed for Chapter 7 Bankruptcy in 2011, with liabilities in the approximate amount of $138,871.68. This debt was the amount remaining on Applicant’s mortgage account. $138,871	For Applicant	Bankruptcy Filing	Admitted	—	—	Claimed Debt Disputed with Creditor

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant is indebted to a creditor for a delinquent debt in the amount of $70,468 that was charged off. This was a car loan that Applicant co-signed for his sister in July 2022.

$70,468

For Applicant

Auto Loan Debt

Admitted

—

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

Documented

Payment Plan with Creditor

1.c

Applicant is indebted to a creditor for a delinquent debt in the amount of $309 that was charged off. This was Applicant’s electricity bill that arrived at his credit union after he had switched accounts to another bank.

$309

For Applicant

Utility or Phone Debt

Admitted

—

Documented

Debt Paid in Full

1.g

Applicant failed to timely file his Federal income tax returns for tax years 2015 through at least 2022.

For Applicant

Tax Filing Failure

Admitted

—

Claimed

Financial Counseling

1.i

Applicant filed for Chapter 7 Bankruptcy in 2011, with liabilities in the approximate amount of $138,871.68. This debt was the amount remaining on Applicant’s mortgage account.

$138,871

For Applicant

Bankruptcy Filing

Admitted

—

Claimed

Debt Disputed with Creditor

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Summary

Why the Applicant Prevailed

Conditions Referenced

Key Rule Quoted

Procedural Posture

Cite For

Full decision