ISCR Case 16-03187.h1

Case Headnote

ISCR Case No. 16-03187.h1

grantedMar 19, 2018· Hon. Arthur E. Marshall, Jr.· hearing

Summary

A 54-year-old applications engineer was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The Statement of Reasons cited approximately $27,000 in delinquent debts and a history of not timely filing tax returns.

Specifically, the applicant had a $15,082 charged-off account related to a repossessed recreational vehicle, and a $10,161 charged-off student loan that has since been satisfied. Another charged-off account for $632 was resolved with a money order and certified mail receipt. A $289 charged-off account was also paid. However, the applicant had not yet addressed multiple medical debts totaling $1,367, accumulated over several years, and was unsure of the conditions for which care was sought.

The judge found that the applicant mitigated these concerns by demonstrating a responsible approach to his financial situation. This included a good-faith effort to repay overdue creditors, a realistic plan to satisfy remaining obligations, and timely filing of tax returns. The applicant's financial issues were attributed largely to circumstances beyond his control, such as underemployment and family medical issues, with his wife's recent employment aiding his progress.

Why the Applicant Prevailed

The applicant demonstrated a good-faith effort to repay overdue creditors and resolve debts.
The applicant's financial issues were largely due to circumstances beyond his control, including underemployment and family medical issues.
The applicant has made substantial progress in addressing his debts and has a realistic plan to satisfy remaining obligations.

Conditions Referenced

Disqualifying

AG ¶ 19(a)raisedInability to Satisfy Debts
AG ¶ 19(b)raisedUnwillingness to Satisfy Debts Regardless of the Inability 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 or Failure to Pay Annual Federal, State, or Local Income Tax as Required

Mitigating

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 or Otherwise Resolve Debts

Key Rule Quoted

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

Procedural Posture

SOR issuedNov 25, 2016
Answer filedJan 11, 2017
Hearing heldJun 15, 2017
Decision dateMar 19, 2018

Cite For

Mitigation of Financial Considerations Under Guideline F
Impact of Personal Circumstances on Financial Obligations
Good-faith Efforts to Resolve Debts as a Mitigating Factor

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	Charged-off account ($15,082) – This account is related to a recreational vehicle Applicant no longer owns. He voluntarily had it repossessed. $15,082	For Applicant	Auto Loan Debt	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations (f) failure to file / fraudulent filing of tax returns or unpaid tax	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts	Claimed Other
1.b	Charged-off account ($10,161) – This student loan account has been satisfied. $10,161	For Applicant	Student Loan Debt	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.c	Charged-off account ($632) – Applicant showed a money order for this amount was purchased and he introduced a certified mail receipt for correspondence mailed to this creditor on the same day. This is sufficient to show this debt has been satisfied. $632	For Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.d	Medical debts ($1,367) - Applicant has not yet taken action on these accounts, which were accumulated over the years. He is unsure of the conditions for which medical care was sought. $1,367	For Applicant	Medical Debt	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	Claimed Other
1.e	Medical debts ($1,367) - Applicant has not yet taken action on these accounts, which were accumulated over the years. He is unsure of the conditions for which medical care was sought. $1,367	For Applicant	Medical Debt	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	Claimed Other
1.f	Medical debts ($1,367) - Applicant has not yet taken action on these accounts, which were accumulated over the years. He is unsure of the conditions for which medical care was sought. $1,367	For Applicant	Medical Debt	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	Claimed Other
1.g	Medical debts ($1,367) - Applicant has not yet taken action on these accounts, which were accumulated over the years. He is unsure of the conditions for which medical care was sought. $1,367	For Applicant	Medical Debt	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	Claimed Other
1.h	Medical debts ($1,367) - Applicant has not yet taken action on these accounts, which were accumulated over the years. He is unsure of the conditions for which medical care was sought. $1,367	For Applicant	Medical Debt	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	Claimed Other
1.i	Medical debts ($1,367) - Applicant has not yet taken action on these accounts, which were accumulated over the years. He is unsure of the conditions for which medical care was sought. $1,367	For Applicant	Medical Debt	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	Claimed Other
1.j	Charged-off account ($289) – Applicant provided evidence that this account balance was paid. $289	For Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	Documented Debt Paid in Full
1.k–1.o	5 sub-charges — specific text not stated in this decision (for the applicant). (low confidence)	For Applicant			—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Charged-off account ($15,082) – This account is related to a recreational vehicle Applicant no longer owns. He voluntarily had it repossessed.

$15,082

For Applicant

Auto Loan Debt

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

(f) failure to file / fraudulent filing of tax returns or unpaid tax

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

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

Claimed

Other

1.b

Charged-off account ($10,161) – This student loan account has been satisfied.

$10,161

For Applicant

Student Loan Debt

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

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

Documented

Debt Paid in Full

1.c

Charged-off account ($632) – Applicant showed a money order for this amount was purchased and he introduced a certified mail receipt for correspondence mailed to this creditor on the same day. This is sufficient to show this debt has been satisfied.

$632

For Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

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

Documented

Debt Paid in Full

1.d

Medical debts ($1,367) - Applicant has not yet taken action on these accounts, which were accumulated over the years. He is unsure of the conditions for which medical care was sought.

$1,367

For Applicant

Medical Debt

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

—

Claimed

Other

1.e

Medical debts ($1,367) - Applicant has not yet taken action on these accounts, which were accumulated over the years. He is unsure of the conditions for which medical care was sought.

$1,367

For Applicant

Medical Debt

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

—

Claimed

Other

1.f

Medical debts ($1,367) - Applicant has not yet taken action on these accounts, which were accumulated over the years. He is unsure of the conditions for which medical care was sought.

$1,367

For Applicant

Medical Debt

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

—

Claimed

Other

1.g

Medical debts ($1,367) - Applicant has not yet taken action on these accounts, which were accumulated over the years. He is unsure of the conditions for which medical care was sought.

$1,367

For Applicant

Medical Debt

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

—

Claimed

Other

1.h

Medical debts ($1,367) - Applicant has not yet taken action on these accounts, which were accumulated over the years. He is unsure of the conditions for which medical care was sought.

$1,367

For Applicant

Medical Debt

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

—

Claimed

Other

1.i

Medical debts ($1,367) - Applicant has not yet taken action on these accounts, which were accumulated over the years. He is unsure of the conditions for which medical care was sought.

$1,367

For Applicant

Medical Debt

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

—

Claimed

Other

1.j

Charged-off account ($289) – Applicant provided evidence that this account balance was paid.

$289

For Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

—

Documented

Debt Paid in Full

1.k–1.o

5 sub-charges — specific text not stated in this decision (for the applicant). (low confidence)

For Applicant

—

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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

FOOTNOTES