ISCR Case 17-03482.h1

Case Headnote

ISCR Case No. 17-03482.h1

grantedJul 30, 2018· Hon. Gregg A. Cervi· hearing

Summary

A 42-year-old general maintenance worker was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The applicant faced allegations regarding 15 delinquent debts totaling nearly $43,478, which included a business loan, various medical collections, an insurance provider collection, a television service provider collection, and a credit card collection. Disqualifying conditions under Adjudicative Guidelines (AG) ¶ 19(a) and AG ¶ 19(c) were initially raised.

The applicant successfully mitigated these concerns by demonstrating significant progress in resolving the debts. Several debts were paid in full, including an insurance collection, a television service collection, a credit card collection, and multiple medical collections, all resolved by March 2018 or earlier. Payment plans were established for other medical collections, with initial installments made and ongoing payments to satisfy the debts. For two medical debts, the applicant was unable to locate the creditors.

The decision to grant the clearance was based on the applicant's good-faith efforts to repay creditors, improved financial management after securing stable employment, and sufficient resources to manage family expenses while continuing debt repayment. Mitigating conditions under AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), and AG ¶ 20(d) were applied.

Why the Applicant Prevailed

The applicant demonstrated a good-faith effort to repay overdue creditors and resolve debts.
The applicant's financial management significantly improved after obtaining stable employment.
The applicant has sufficient resources to maintain family expenses while repaying debts.

Conditions Referenced

Disqualifying

AG ¶ 19(a)raisedInability to Satisfy Debts
AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations

Mitigating

AG ¶ 20(a)appliedBehavior Occurred Under Circumstances Unlikely to Recur
AG ¶ 20(b)appliedConditions Largely Beyond the Person's Control
AG ¶ 20(c)appliedReceived Financial Counseling From a Credible Source
AG ¶ 20(d)appliedInitiated and Adhered to a Good-faith Effort to Repay Debts

Key Rule Quoted

“The ultimate determination of whether to grant eligibility for a security clearance must be an overall commonsense judgment based upon careful consideration of the guidelines and the whole-person concept.”

Procedural Posture

SOR issuedOct 20, 2017
Answer filedNov 17, 2017
Hearing heldMar 15, 2018
Decision dateJul 30, 2018

Cite For

Mitigation of Financial Considerations Under Guideline F
Demonstrating Good-faith Efforts in Debt Repayment
Application of the Whole-person Concept in Security Clearance Decisions

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	SOR ¶ 1.a was a business loan that Applicant was unable to pay due to insufficient income.	For Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts	Claimed Debt Paid in Full
1.b	SOR ¶ 1.b was paid through a payment plan with the final payment made in March 2018.	For Applicant	Unspecified Financial	Admitted	—	—	Documented Debt Paid in Full
1.c	SOR ¶ 1.c is a medical debt listed in a credit report, but Applicant has been unable to locate the creditor.	For Applicant	Medical Debt	Admitted	—	—	Claimed Debt Disputed with Creditor
1.d	SOR ¶ 1.d is a medical collection. Applicant arranged a monthly payment schedule, and has paid the first installment. The debt is being satisfied.	For Applicant	Medical Debt	Admitted	—	—	Documented Payment Plan with Creditor
1.e	SOR ¶ 1.e is a medical debt listed in a credit report, but Applicant has been unable to locate the creditor.	For Applicant	Medical Debt	Admitted	—	—	Claimed Debt Disputed with Creditor
1.f	SOR ¶ 1.f is a collection by an insurance provider that was settled and paid in full in March 2018.	For Applicant	Unspecified Financial	Admitted	—	—	Documented Debt Paid in Full
1.g	SOR ¶ 1.g is a medical collection. Applicant arranged a payment plan in November 2017, began payments, and has four payments remaining. This debt is being satisfied.	For Applicant	Medical Debt	Admitted	—	—	Documented Payment Plan with Creditor
1.h	SOR ¶ 1.h is a medical collection that was paid in full in two installment payments in 2017 and has been resolved.	For Applicant	Medical Debt	Admitted	—	—	Documented Debt Paid in Full
1.i	SOR ¶ 1.i is a television service provider collection account that was paid in March 2018 and resolved.	For Applicant	Unspecified Financial	Admitted	—	—	Documented Debt Paid in Full
1.j	SOR ¶ 1.j is a credit card collection that was paid and resolved in March 2018.	For Applicant	Credit Card Debt	Admitted	—	—	Documented Debt Paid in Full
1.k	SOR ¶ 1.k are small medical collection accounts that were paid in 2017. All of the debts have been resolved.	For Applicant	Medical Debt	Admitted	—	—	Documented Debt Paid in Full
1.l–1.o	4 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

SOR ¶ 1.a was a business loan that Applicant was unable to pay due to insufficient income.

For Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

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

Claimed

Debt Paid in Full

1.b

SOR ¶ 1.b was paid through a payment plan with the final payment made in March 2018.

For Applicant

Unspecified Financial

Admitted

—

Documented

Debt Paid in Full

1.c

SOR ¶ 1.c is a medical debt listed in a credit report, but Applicant has been unable to locate the creditor.

For Applicant

Medical Debt

Admitted

—

Claimed

Debt Disputed with Creditor

1.d

SOR ¶ 1.d is a medical collection. Applicant arranged a monthly payment schedule, and has paid the first installment. The debt is being satisfied.

For Applicant

Medical Debt

Admitted

—

Documented

Payment Plan with Creditor

1.e

SOR ¶ 1.e is a medical debt listed in a credit report, but Applicant has been unable to locate the creditor.

For Applicant

Medical Debt

Admitted

—

Claimed

Debt Disputed with Creditor

1.f

SOR ¶ 1.f is a collection by an insurance provider that was settled and paid in full in March 2018.

For Applicant

Unspecified Financial

Admitted

—

Documented

Debt Paid in Full

1.g

SOR ¶ 1.g is a medical collection. Applicant arranged a payment plan in November 2017, began payments, and has four payments remaining. This debt is being satisfied.

For Applicant

Medical Debt

Admitted

—

Documented

Payment Plan with Creditor

1.h

SOR ¶ 1.h is a medical collection that was paid in full in two installment payments in 2017 and has been resolved.

For Applicant

Medical Debt

Admitted

—

Documented

Debt Paid in Full

1.i

SOR ¶ 1.i is a television service provider collection account that was paid in March 2018 and resolved.

For Applicant

Unspecified Financial

Admitted

—

Documented

Debt Paid in Full

1.j

SOR ¶ 1.j is a credit card collection that was paid and resolved in March 2018.

For Applicant

Credit Card Debt

Admitted

—

Documented

Debt Paid in Full

1.k

SOR ¶ 1.k are small medical collection accounts that were paid in 2017. All of the debts have been resolved.

For Applicant

Medical Debt

Admitted

—

Documented

Debt Paid in Full

1.l–1.o

4 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

ANALYSIS

WHOLE PERSON CONCEPT

FORMAL FINDINGS

CONCLUSION

FOOTNOTES