ISCR Case 17-01737.h1

Case Headnote

ISCR Case No. 17-01737.h1

deniedDec 15, 2017· Hon. Robert Robinson Gales· hearing

Summary

A 28-year-old aircraft mechanic employed by a defense contractor was denied a security clearance under Guideline F (Financial Considerations) due to unresolved financial issues. The applicant had two bankruptcies and multiple delinquent accounts, which raised concerns about his reliability and trustworthiness.

Specific allegations included two automobile installment loans, both surrendered as part of a 2015 bankruptcy. One loan had a high credit of $42,298, a past-due balance of $10,299, and a charged-off amount of $14,868. The other had a high credit of $29,889 and an unpaid balance of $14,201. Both accounts remained delinquent, with the applicant stating he could not afford payments but would attempt to pay when able. Additionally, an unspecified account with a $1,000 high credit and a $1,224 unpaid balance, also related to the 2015 bankruptcy, remained unresolved. A satellite network account with a $149 unpaid balance was also delinquent.

The judge found that the applicant failed to demonstrate a good-faith effort to address his financial obligations. He did not provide evidence of a reasonable plan to resolve his financial problems, and his history of bankruptcies and delinquent accounts indicated a lack of financial responsibility. Consequently, the security clearance was denied.

Why the Applicant Was Denied

The applicant failed to mitigate security concerns regarding financial considerations.
He did not provide evidence of a reasonable plan to resolve his financial problems.
The applicant's two bankruptcies and multiple delinquent accounts indicated a lack of financial responsibility.

Conditions Referenced

Disqualifying

AG ¶ 19(a)raisedInability 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

Mitigating

AG ¶ 20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
AG ¶ 20(c)rejectedEvidence of Financial CounselingThe applicant provided no evidence of financial counseling beyond that associated with his bankruptcies.

Key Rule Quoted

“Eligibility for a security clearance is denied.”

Procedural Posture

SOR issuedJun 1, 2017
Answer filedJun 28, 2017Applicant elected to proceed without a hearing.
Hearing held—No hearing was held; decision made on the written record.
Decision dateDec 15, 2017

Cite For

Failure to Demonstrate a Good-faith Effort to Resolve Financial Obligations Under Guideline F
Impact of Unresolved Financial Issues on Security Clearance Eligibility
Consideration of Personal Circumstances in Financial Distress Cases

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–1.b	2 sub-charges — specific text not stated in this decision (against the applicant).	Against Applicant			—	—	—
1.c	This is an automobile installment loan with a high credit of $42,298 and past-due balance of $10,299 that was placed for collection. The creditor eventually charged off $14,868. The vehicle was surrendered to the lienholder as part of Applicant’s 2015 bankruptcy. Although not reflected in any documentation, Applicant contends that the creditor obtained a judgment against him. Applicant admitted that the account remains delinquent. He explained that he cannot currently afford to pay anything on the debt, but would attempt to pay when he has money to do so. The account has not been resolved. $10,299	Against 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	—	—
1.d	This is another automobile loan with a high credit of $29,889 and past-due and unpaid balance of $14,201 that was placed for collection and eventually charged off. This vehicle was also surrendered to the lienholder as part of Applicant’s 2015 bankruptcy. Applicant admitted that the account remains delinquent. He repeated that he cannot currently afford to pay anything on the debt, but would attempt to pay when he has money to do so. The account has not been resolved. $14,201	Against 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	—	—
1.e	This is an unspecified type of account with a high credit of $1,000 and a past-due balance of $1,163 that was placed for collection. The remaining unpaid balance is $1,224. This vehicle was also surrendered to the lienholder as part of Applicant’s 2015 bankruptcy. Applicant acknowledged that he had forgotten about the bill. He stated that he would try to contact the creditor to set up a payment plan. He offered no evidence to indicate that he has done so. The account has not been resolved. $1,224	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.f	This is a satellite network account with an unpaid balance of $149 that was placed for collection. Applicant acknowledged that he had forgotten about the bill. He stated that he would contact the creditor to finalize the account, but he offered no evidence to indicate that he had done so. The account has not been resolved. $149	Against Applicant	Unspecified Financial	Admitted	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a–1.b

2 sub-charges — specific text not stated in this decision (against the applicant).

Against Applicant

—

1.c

This is an automobile installment loan with a high credit of $42,298 and past-due balance of $10,299 that was placed for collection. The creditor eventually charged off $14,868. The vehicle was surrendered to the lienholder as part of Applicant’s 2015 bankruptcy. Although not reflected in any documentation, Applicant contends that the creditor obtained a judgment against him. Applicant admitted that the account remains delinquent. He explained that he cannot currently afford to pay anything on the debt, but would attempt to pay when he has money to do so. The account has not been resolved.

$10,299

Against 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

—

1.d

This is another automobile loan with a high credit of $29,889 and past-due and unpaid balance of $14,201 that was placed for collection and eventually charged off. This vehicle was also surrendered to the lienholder as part of Applicant’s 2015 bankruptcy. Applicant admitted that the account remains delinquent. He repeated that he cannot currently afford to pay anything on the debt, but would attempt to pay when he has money to do so. The account has not been resolved.

$14,201

Against 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

—

1.e

This is an unspecified type of account with a high credit of $1,000 and a past-due balance of $1,163 that was placed for collection. The remaining unpaid balance is $1,224. This vehicle was also surrendered to the lienholder as part of Applicant’s 2015 bankruptcy. Applicant acknowledged that he had forgotten about the bill. He stated that he would try to contact the creditor to set up a payment plan. He offered no evidence to indicate that he has done so. The account has not been resolved.

$1,224

Against Applicant

Unspecified Financial

Admitted

—

1.f

This is a satellite network account with an unpaid balance of $149 that was placed for collection. Applicant acknowledged that he had forgotten about the bill. He stated that he would contact the creditor to finalize the account, but he offered no evidence to indicate that he had done so. The account has not been resolved.

$149

Against Applicant

Unspecified Financial

Admitted

—

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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

FOOTNOTES