ISCR Case 25-00376

Case Headnote

ISCR Case No. 25-00376

deniedDec 2, 2025· Hon. Charles C. Hale· hearing

Summary

A 48-year-old applicant was denied a security clearance under Guideline F (Financial Considerations) due to multiple delinquent debts totaling approximately $29,732. The Statement of Reasons (SOR) detailed five specific collection accounts: one for $9,116, another for $7,029, two credit card accounts for $6,780 and $5,949 respectively, and a final account for $858. All these debts remained delinquent as of the date of the SOR.

Disqualifying conditions under Adjudicative Guidelines (AG) ¶ 19(a) and AG ¶ 19(c) were raised, indicating a history of not meeting financial obligations and an inability or unwillingness to satisfy debts. While mitigating conditions AG ¶ 20(b), AG ¶ 20(d), and AG ¶ 20(e) were applied, acknowledging some efforts to address the issues, they were ultimately insufficient.

The denial was based on the applicant's failure to demonstrate a consistent and responsible repayment plan for the delinquent debts. The financial issues were deemed recent and numerous, raising concerns about reliability and trustworthiness. Furthermore, insufficient evidence was provided to show adherence to good-faith efforts to repay overdue creditors.

Why the Applicant Was Denied

The applicant failed to demonstrate a consistent and responsible repayment plan for his delinquent debts.
The applicant's financial issues were recent and numerous, raising concerns about his reliability and trustworthiness.
Insufficient evidence was provided to show adherence to good-faith efforts to repay overdue creditors.

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 That Resulted in the Financial Problem Were Largely Beyond the Person's ControlThe loss of the applicant's wife's teaching position was a circumstance beyond his control.
AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsInsufficient evidence was provided to show adherence to a good-faith effort to repay overdue creditors.
AG ¶ 20(e)rejectedReasonable Basis to Dispute the Legitimacy of the Past-due DebtThe applicant did not document his basis to dispute the legitimacy of the past-due debts.

Key Rule Quoted

“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the adjudicative guidelines.”

Procedural Posture

SOR issuedApr 25, 2025
Answer filedMay 15, 2025Requested a decision on the written record without a hearing.
Hearing held—Decision made based on written record.
Decision dateDec 2, 2025

Cite For

Insufficient Evidence to Mitigate Financial Concerns Under Guideline F
Importance of Demonstrating a Consistent Repayment Plan for Debts
Impact of Financial Instability 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.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Indebted for an account placed for collection by a creditor in the approximate amount of $9,116 and as of the date of the SOR remains delinquent. $9,116	For Applicant	Unspecified Financial	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Claimed Payment Plan with Creditor
1.b	Indebted to a bank for an account placed for collection in the approximate amount of $7,029, which as of the date of the SOR remains delinquent. $7,029	Against Applicant	Unspecified Financial	Admitted	—	—	Claimed Debt Disputed with Creditor
1.c	Indebted to the same credit card company for accounts placed for collection in the approximate amounts of $6,780, which as of the date of the SOR remains delinquent. $6,780	Against Applicant	Credit Card Debt	Admitted	—	—	Claimed Payment Plan with Creditor
1.d	Indebted to the same credit card company for accounts placed for collection in the approximate amounts of $5,949, which as of the date of the SOR remains delinquent. $5,949	Against Applicant	Credit Card Debt	Admitted	—	—	—
1.e	Indebted to a creditor for an account placed for collection in the approximate amount of $858, which as of the date of the SOR remains delinquent. $858	Against Applicant	Unspecified Financial	Admitted	—	—	Claimed Other

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Indebted for an account placed for collection by a creditor in the approximate amount of $9,116 and as of the date of the SOR remains delinquent.

$9,116

For Applicant

Unspecified Financial

Admitted

—

(d) good-faith effort to repay or otherwise resolve debts

Claimed

Payment Plan with Creditor

1.b

Indebted to a bank for an account placed for collection in the approximate amount of $7,029, which as of the date of the SOR remains delinquent.

$7,029

Against Applicant

Unspecified Financial

Admitted

—

Claimed

Debt Disputed with Creditor

1.c

Indebted to the same credit card company for accounts placed for collection in the approximate amounts of $6,780, which as of the date of the SOR remains delinquent.

$6,780

Against Applicant

Credit Card Debt

Admitted

—

Claimed

Payment Plan with Creditor

1.d

Indebted to the same credit card company for accounts placed for collection in the approximate amounts of $5,949, which as of the date of the SOR remains delinquent.

$5,949

Against Applicant

Credit Card Debt

Admitted

—

1.e

Indebted to a creditor for an account placed for collection in the approximate amount of $858, which as of the date of the SOR remains delinquent.

$858

Against Applicant

Unspecified Financial

Admitted

—

Claimed

Other

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Case Profile

Summary

Why the Applicant Was Denied

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