ISCR Case 09-04670.h1

Case Headnote

ISCR Case No. 09-04670.h1

grantedJul 1, 2009· Hon. Robert J. Tuider· hearing

Summary

A 43-year-old test vehicle operator was granted a security clearance despite 22 delinquent debts totaling $48,106, which raised concerns under Guideline F (Financial Considerations). The applicant's financial difficulties were primarily linked to his divorce and job loss.

The applicant demonstrated significant efforts to address his debts. He negotiated a 24-month repayment plan for a joint home mortgage, making increased monthly payments with his former wife. He established payment plans for a personal loan, two credit card collection accounts, an overdrawn checking account, and an IRS tax lien from 2007, which he is paying via payroll deductions. He also paid in full several collection accounts, including those for automobile insurance, dental services, medical care, and a returned check. Additionally, he provided documentation showing current payments on multiple cable services, cell phone service, and a furniture account. He also clarified that several debts belonged solely to his former wife or former girlfriend.

While some debts, such as a judgment for an automobile company and two collection accounts for cable service and a DVD company, remained unresolved, the judge found that the applicant had made a good-faith effort to resolve his financial issues. His modest lifestyle and current status on monthly bills further supported the decision to grant the security clearance.

Why the Applicant Prevailed

The applicant demonstrated a good-faith effort to resolve his debts, including negotiating repayment plans and settling several accounts.
The applicant's financial difficulties were largely attributed to circumstances beyond his control, such as divorce and job loss.
The applicant maintained a modest lifestyle and was current on his monthly bills, indicating financial responsibility.

Conditions Referenced

Disqualifying

AG ¶ 19(a)raisedInability or Unwillingness 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 Control
AG ¶ 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
AG ¶ 20(e)appliedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due Debt

Key Rule Quoted

“Failure or inability to live within one’s means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual’s reliability, trustworthiness, and ability to protect classified information.”

Procedural Posture

SOR issuedJan 13, 2010
Answer filedMar 18, 2010
Hearing heldMay 18, 2010
Decision dateJun 1, 2010

Cite For

Good-faith Efforts to Resolve Financial Obligations Under Guideline F
Mitigating Conditions Applicable to Financial Considerations
Impact of Personal Circumstances on Financial Stability

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	The debt alleged in SOR ¶ 1.a. is for an $11,962 amount on a home mortgage jointly owed by Applicant and his former wife. They fell behind on the mortgage as a result of their divorce and loss of employment. The original monthly payment was approximately $663; however, in August 2009, Applicant contacted their lender and negotiated a 24-month repayment plan to bring their account current. Since September 2009, Applicant and his former wife have been jointly paying $1,046 with a payoff date of August 1, 2011, at which time their arrearages will be current. $11,962	For Applicant	Mortgage or Home Loan 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 Payment Plan with Creditor
1.b	The debt alleged in SOR ¶ 1.b. is a charged-off credit card account in the amount of $1,199. Applicant established that this account is his former wife’s account and she is solely responsible for that debt. $1,199	For Applicant	Credit Card Debt	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.c	The debt alleged in SOR ¶ 1.c. is a charged-off personal loan in the amount of $7,547. Applicant contacted the creditor to set up a payment plan and is waiting for a response from the creditor. $7,547	For Applicant	Personal Loan Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	Claimed Payment Plan with Creditor
1.d	The debt alleged in SOR ¶ 1.d. is a collection account for furniture rental in the amount of $560. Applicant established that this account is his former girlfriend’s account and she is solely responsible for that debt. $560	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.e	The debt alleged in SOR ¶ 1.e. is a collection account for a credit card in the amount of $1,256. Applicant contacted the creditor and is making $50 monthly payments. $1,256	For Applicant	Credit Card Debt	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(d) good-faith effort to repay or otherwise resolve debts	Documented Payment Plan with Creditor
1.f	The debt alleged in SOR ¶ 1.f. is a collection account for an overdrawn checking account in the amount of $201. Applicant contacted the creditor and is making $40 monthly payments. $201	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(d) good-faith effort to repay or otherwise resolve debts	Documented Payment Plan with Creditor
1.g	The debt alleged in SOR ¶ 1.g. is a collection account for cell phone service in the amount of $998. Applicant submitted documentation that payments on his cell phone service are current. $998	For Applicant	Utility or Phone Debt	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.h	The debt alleged in SOR ¶ 1.h. is a collection account for automobile insurance in the amount of $270. Applicant paid this account in full. $270	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.i	The debt alleged in SOR ¶ 1.i. is a collection account for a credit card in the amount of $1,206. Applicant contacted the creditor and is making $50 monthly payments. $1,206	For Applicant	Credit Card Debt	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(d) good-faith effort to repay or otherwise resolve debts	Documented Payment Plan with Creditor
1.j	The debt alleged in SOR ¶ 1.j. is a collection account for cell phone service in the amount of $1,658. Applicant established that this account is his former wife’s account and she is solely responsible for that debt. $1,658	For Applicant	Utility or Phone Debt	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.k	The debt alleged in SOR ¶ 1.k. is a collection account for dental services in the amount of $60. Applicant paid this account in full. $60	For Applicant	Medical Debt	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.l	The debt alleged in SOR ¶ 1.l. is a collection account for cable service in the amount of $91. Applicant submitted documentation that payments on his cable service are current. $91	For Applicant	Utility or Phone Debt	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.m	The debt alleged in SOR ¶ 1.m. is a collection account for a separate cable service in the amount of $183. Applicant submitted documentation that payments on his cable service are current. $183	For Applicant	Utility or Phone Debt	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.n	The debt alleged in SOR ¶ 1.n. is a collection account for medical care in the amount of $30. Applicant paid this account in full. $30	For Applicant	Medical Debt	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.o	The debt alleged in SOR ¶ 1.o. is a collection account from a furniture company in the amount of $275. Applicant submitted documentation that payments on this account are current. $275	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.p	The debt alleged in SOR ¶ 1.p. is a judgment in favor of an automobile company for $8,607. Applicant’s truck was voluntarily repossessed in October 2006 following the loss of his job. Applicant has contacted the creditor several times to negotiate a settlement and is waiting for a response. $8,607	For Applicant	Judgment Against Applicant	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	Claimed Debt Disputed with Creditor
1.q	The debt alleged in SOR ¶ 1.q. is a tax lien in favor of the Internal Revenue Service (IRS) in the amount of $11,508. Applicant contacted the IRS, set up a payment plan, and is making monthly payments through payroll deductions. Applicant’s tax liability stems from his 2007 tax return. He did file an extension; however, the amount of lien reflects tax owed, interest and penalties. $11,508	For Applicant	Tax Unpaid	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(d) good-faith effort to repay or otherwise resolve debts	Documented Payment Plan with IRS
1.r	The debts alleged in SOR ¶¶ 1.r. and 1.s. are past-due medical accounts from an unknown provider in the amounts $277 and $33, respectively. The Government’s evidence did not provide the identity of the creditors or contact information. Furthermore, Applicant does not recognize the debts. Accordingly, Applicant is unable to pursue these debts. $277	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.s	specific text not stated in this decision $33	For Applicant	Unspecified Financial	Unknown	—	—	—
1.t	The debt alleged in SOR ¶ 1.t. is a collection account for cable service in the amount of $127. This bill is for cable service when Applicant and his former wife were married and lived together. Applicant recognizes that the cable bill is in his name and he is legally responsible for payment. He intends to pay this debt; however, given his resources and other outstanding debts, he has not been able to resolve this debt to date. $127	For Applicant	Utility or Phone Debt	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.u	The debt alleged in SOR ¶ 1.u. is a collection account for a check returned for insufficient funds in the amount of $56. Applicant paid this account in full. $56	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.v	The debt alleged in SOR ¶ 1.v. is a collection account from a DVD company in the amount of $129. Applicant asserts these are for DVDs he never ordered and were sent to an address where he did not live. Applicant intends to resolve this account; however, given his resources and outstanding debts, he has not been able to resolve this debt to date. $129	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.w	In April 2000, Applicant filed for Chapter 13 bankruptcy protection. He testified at the time his former wife’s hours had been cut back and they were unable to remain current on their bills. He chose Chapter 13 over Chapter 7 because he wanted to repay his creditors. After making payments under Chapter 13 for approximately one year, he was able to get his monthly payments under control and his case was dismissed in June 2001.	For Applicant	Bankruptcy Filing	Admitted	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

The debt alleged in SOR ¶ 1.a. is for an $11,962 amount on a home mortgage jointly owed by Applicant and his former wife. They fell behind on the mortgage as a result of their divorce and loss of employment. The original monthly payment was approximately $663; however, in August 2009, Applicant contacted their lender and negotiated a 24-month repayment plan to bring their account current. Since September 2009, Applicant and his former wife have been jointly paying $1,046 with a payoff date of August 1, 2011, at which time their arrearages will be current.

$11,962

For Applicant

Mortgage or Home Loan 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

Payment Plan with Creditor

1.b

The debt alleged in SOR ¶ 1.b. is a charged-off credit card account in the amount of $1,199. Applicant established that this account is his former wife’s account and she is solely responsible for that debt.

$1,199

For Applicant

Credit Card Debt

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.c

The debt alleged in SOR ¶ 1.c. is a charged-off personal loan in the amount of $7,547. Applicant contacted the creditor to set up a payment plan and is waiting for a response from the creditor.

$7,547

For Applicant

Personal Loan Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

Claimed

Payment Plan with Creditor

1.d

The debt alleged in SOR ¶ 1.d. is a collection account for furniture rental in the amount of $560. Applicant established that this account is his former girlfriend’s account and she is solely responsible for that debt.

$560

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.e

The debt alleged in SOR ¶ 1.e. is a collection account for a credit card in the amount of $1,256. Applicant contacted the creditor and is making $50 monthly payments.

$1,256

For Applicant

Credit Card Debt

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

Documented

Payment Plan with Creditor

1.f

The debt alleged in SOR ¶ 1.f. is a collection account for an overdrawn checking account in the amount of $201. Applicant contacted the creditor and is making $40 monthly payments.

$201

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

Documented

Payment Plan with Creditor

1.g

The debt alleged in SOR ¶ 1.g. is a collection account for cell phone service in the amount of $998. Applicant submitted documentation that payments on his cell phone service are current.

$998

For Applicant

Utility or Phone Debt

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.h

The debt alleged in SOR ¶ 1.h. is a collection account for automobile insurance in the amount of $270. Applicant paid this account in full.

$270

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.i

The debt alleged in SOR ¶ 1.i. is a collection account for a credit card in the amount of $1,206. Applicant contacted the creditor and is making $50 monthly payments.

$1,206

For Applicant

Credit Card Debt

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

Documented

Payment Plan with Creditor

1.j

The debt alleged in SOR ¶ 1.j. is a collection account for cell phone service in the amount of $1,658. Applicant established that this account is his former wife’s account and she is solely responsible for that debt.

$1,658

For Applicant

Utility or Phone Debt

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.k

The debt alleged in SOR ¶ 1.k. is a collection account for dental services in the amount of $60. Applicant paid this account in full.

$60

For Applicant

Medical Debt

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.l

The debt alleged in SOR ¶ 1.l. is a collection account for cable service in the amount of $91. Applicant submitted documentation that payments on his cable service are current.

$91

For Applicant

Utility or Phone Debt

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.m

The debt alleged in SOR ¶ 1.m. is a collection account for a separate cable service in the amount of $183. Applicant submitted documentation that payments on his cable service are current.

$183

For Applicant

Utility or Phone Debt

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.n

The debt alleged in SOR ¶ 1.n. is a collection account for medical care in the amount of $30. Applicant paid this account in full.

$30

For Applicant

Medical Debt

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.o

The debt alleged in SOR ¶ 1.o. is a collection account from a furniture company in the amount of $275. Applicant submitted documentation that payments on this account are current.

$275

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.p

The debt alleged in SOR ¶ 1.p. is a judgment in favor of an automobile company for $8,607. Applicant’s truck was voluntarily repossessed in October 2006 following the loss of his job. Applicant has contacted the creditor several times to negotiate a settlement and is waiting for a response.

$8,607

For Applicant

Judgment Against Applicant

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

Claimed

Debt Disputed with Creditor

1.q

The debt alleged in SOR ¶ 1.q. is a tax lien in favor of the Internal Revenue Service (IRS) in the amount of $11,508. Applicant contacted the IRS, set up a payment plan, and is making monthly payments through payroll deductions. Applicant’s tax liability stems from his 2007 tax return. He did file an extension; however, the amount of lien reflects tax owed, interest and penalties.

$11,508

For Applicant

Tax Unpaid

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

Documented

Payment Plan with IRS

1.r

The debts alleged in SOR ¶¶ 1.r. and 1.s. are past-due medical accounts from an unknown provider in the amounts $277 and $33, respectively. The Government’s evidence did not provide the identity of the creditors or contact information. Furthermore, Applicant does not recognize the debts. Accordingly, Applicant is unable to pursue these debts.

$277

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.s

specific text not stated in this decision

$33

For Applicant

Unspecified Financial

Unknown

—

1.t

The debt alleged in SOR ¶ 1.t. is a collection account for cable service in the amount of $127. This bill is for cable service when Applicant and his former wife were married and lived together. Applicant recognizes that the cable bill is in his name and he is legally responsible for payment. He intends to pay this debt; however, given his resources and other outstanding debts, he has not been able to resolve this debt to date.

$127

For Applicant

Utility or Phone Debt

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.u

The debt alleged in SOR ¶ 1.u. is a collection account for a check returned for insufficient funds in the amount of $56. Applicant paid this account in full.

$56

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.v

The debt alleged in SOR ¶ 1.v. is a collection account from a DVD company in the amount of $129. Applicant asserts these are for DVDs he never ordered and were sent to an address where he did not live. Applicant intends to resolve this account; however, given his resources and outstanding debts, he has not been able to resolve this debt to date.

$129

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.w

In April 2000, Applicant filed for Chapter 13 bankruptcy protection. He testified at the time his former wife’s hours had been cut back and they were unable to remain current on their bills. He chose Chapter 13 over Chapter 7 because he wanted to repay his creditors. After making payments under Chapter 13 for approximately one year, he was able to get his monthly payments under control and his case was dismissed in June 2001.

For Applicant

Bankruptcy Filing

Admitted

—

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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