ISCR Case 09-04353.h1

Case Headnote

ISCR Case No. 09-04353.h1

grantedJan 5, 2011· Hon. Philip S. Howe· hearing

Summary

A 25-year-old married dispatcher was granted a security clearance despite concerns under Guideline F (Financial Considerations) related to nine delinquent debts totaling $36,516. The Statement of Reasons detailed these debts, which included medical expenses of $90, $295, and $9,619, the latter incurred after a four-day hospital stay for burnt lungs when she lacked health insurance. Other debts included $429 to a bank, $1,887 to a cell phone company due to reduced income during a disability leave, and $10,864 for a car loan taken out for a friend who failed to make payments. Additionally, she owed $698 to a television service provider and had two credit card debts of $4,968 and $7,666, both of which she is now repaying to her father after borrowing from him.

The applicant admitted to most debts and provided explanations for her financial difficulties. Disqualifying conditions F.1.a and F.1.c were raised, but mitigating conditions F.2.a, F.2.b, and F.2.d were applied.

The clearance was granted because the applicant demonstrated a credible repayment plan, having resolved three of the nine listed debts. Her financial issues were largely attributed to circumstances beyond her control, such as medical emergencies and a lack of income.

Why the Applicant Prevailed

The applicant admitted to the majority of the debts and provided explanations for her financial difficulties.
She demonstrated a credible repayment plan, repaying three of the nine debts listed in the SOR.
The applicant's financial issues were largely due to circumstances beyond her control, including medical emergencies and lack of income.

Conditions Referenced

Disqualifying

F.1.araisedInability or Unwillingness to Satisfy Debts
F.1.craisedA History of Not Meeting Financial Obligations

Mitigating

F.2.aappliedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
F.2.bappliedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
F.2.dappliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts

Key Rule Quoted

“An applicant is not required to show that [she] has completely paid off [her] indebtedness, only that [she] has established a reasonable plan to resolve [her] debts and has taken significant actions to implement that plan.”
— ISCR Case No. 06-12930 at 2 (App. Bd. Mar. 17, 2008)

Procedural Posture

SOR issuedMay 19, 2010
Answer filedMay 28, 2010
Hearing heldAug 24, 2010
Decision dateJan 5, 2011

Cite For

Mitigation of Financial Issues Under Guideline F
Consideration of Circumstances Beyond the Applicant's Control in Financial Cases
Importance of a Reasonable Repayment Plan 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	Applicant owes $90 to a medical provider for an annual medical checkup. This debt was paid in cash in 2010. $90	For Applicant	Medical Debt	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	Documented Debt Paid in Full
1.b	Applicant owes $295 to a medical provider for an annual wellness checkup. $295	For Applicant	Medical Debt	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.c	Applicant owes $9,619 to a medical provider for treatment she obtained when her lungs were burnt when she inhaled hot oil and spent four days in the hospital. She did not have health insurance. $9,619	For Applicant	Medical Debt	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.d	Applicant owes $429 to a bank. Applicant thought this debt was part of a former auto loan she repaid but it is a separate debt. She paid the debt down to $429 from about $2,000. $429	For Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.e	Applicant owes $1,887 to a cell telephone company. Applicant incurred this debt when she was on disability from November 2008 to March 2009 for a broken back. Her income dropped substantially and she was not able to repay this debt. $1,887	For Applicant	Utility or Phone Debt	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.f	Applicant owes $10,864 on a car loan she incurred when she purchased a car for a friend. He did not make the payments and she returned the car to the lender. The car was sold but the lender wants her to pay the balance on the loan. $10,864	For Applicant	Auto Loan Debt	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.g	Applicant owes $698 to a television service provider. Applicant purchased equipment from a store so she would have television service in her truck cab as she and her husband drove the tractor trailer trucks for her employer. The television service took the position she did not purchase the equipment but only rented it. The debt is for the rental payments. $698	For Applicant	Utility or Phone Debt	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.h	Applicant owes $4,968 on a credit card. This debt was paid by borrowing the money from her father and now repays it to him at the $500 monthly rate. $4,968	For Applicant	Credit Card Debt	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	Documented Debt Paid in Full
1.i	Applicant owes $7,666 debt to the same bank credit card. This debt was paid by borrowing the money from her father and now repays it to him at the $500 monthly rate. $7,666	For Applicant	Credit Card Debt	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	Documented Debt Paid in Full
1.j	specific text not stated in this decision	For Applicant	Unspecified Financial	Unknown	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant owes $90 to a medical provider for an annual medical checkup. This debt was paid in cash in 2010.

$90

For Applicant

Medical Debt

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

Documented

Debt Paid in Full

1.b

Applicant owes $295 to a medical provider for an annual wellness checkup.

$295

For Applicant

Medical Debt

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.c

Applicant owes $9,619 to a medical provider for treatment she obtained when her lungs were burnt when she inhaled hot oil and spent four days in the hospital. She did not have health insurance.

$9,619

For Applicant

Medical Debt

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.d

Applicant owes $429 to a bank. Applicant thought this debt was part of a former auto loan she repaid but it is a separate debt. She paid the debt down to $429 from about $2,000.

$429

For Applicant

Unspecified Financial

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.e

Applicant owes $1,887 to a cell telephone company. Applicant incurred this debt when she was on disability from November 2008 to March 2009 for a broken back. Her income dropped substantially and she was not able to repay this debt.

$1,887

For Applicant

Utility or Phone Debt

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.f

Applicant owes $10,864 on a car loan she incurred when she purchased a car for a friend. He did not make the payments and she returned the car to the lender. The car was sold but the lender wants her to pay the balance on the loan.

$10,864

For Applicant

Auto Loan Debt

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.g

Applicant owes $698 to a television service provider. Applicant purchased equipment from a store so she would have television service in her truck cab as she and her husband drove the tractor trailer trucks for her employer. The television service took the position she did not purchase the equipment but only rented it. The debt is for the rental payments.

$698

For Applicant

Utility or Phone Debt

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.h

Applicant owes $4,968 on a credit card. This debt was paid by borrowing the money from her father and now repays it to him at the $500 monthly rate.

$4,968

For Applicant

Credit Card Debt

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

Documented

Debt Paid in Full

1.i

Applicant owes $7,666 debt to the same bank credit card. This debt was paid by borrowing the money from her father and now repays it to him at the $500 monthly rate.

$7,666

For Applicant

Credit Card Debt

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

Documented

Debt Paid in Full

1.j

specific text not stated in this decision

For Applicant

Unspecified Financial

Unknown

—

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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