ISCR Case 14-03873.h1

Case Headnote

ISCR Case No. 14-03873.h1

grantedFeb 4, 2016· Hon. Jennifer I. Goldstein· hearing

Summary

A 55-year-old Navy veteran and defense contractor was initially alleged to be delinquent on five debts totaling $30,386 under Guideline F (Financial Considerations). Specifically, the Statement of Reasons (SOR) cited an outstanding debt of $16,083, which the applicant was resolving through $200 monthly payments, reducing the balance to $14,162.19. Another debt of $8,137 was also being resolved with $200 monthly payments, decreasing the balance to $6,287.70.

Additionally, a debt of $1,350 was reported as paid by September 29, 2015. Two allegations, 1.d and 1.e, related to the same debt, initially totaling $2,150 and $2,666 respectively. This combined debt was resolved through payment arrangements, with the balance reduced to $256 by September 28, 2015, and fully paid on October 5, 2015.

The applicant demonstrated a good-faith effort to resolve his financial issues, which were largely attributed to his wife's unexpected unemployment. He successfully resolved two debts and established consistent payment plans for the remaining obligations. Based on these mitigating actions and a recent track record of consistent payments, the applicant's security clearance was GRANTED.

Why the Applicant Prevailed

Applicant resolved two debts and is actively making payments on the remaining debts.
The financial difficulties were largely due to his wife's unexpected unemployment, a circumstance beyond his control.
He demonstrated a good-faith effort to repay creditors and has shown a recent track record of consistent payments.

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 Beyond the Person's ControlApplicant's wife's unemployment was a circumstance beyond his control.
AG ¶ 20(c)appliedReceiving Counseling or Indications That the Problem Is Being ResolvedApplicant has shown clear indications that his financial problems are being resolved.
AG ¶ 20(d)appliedGood-faith Effort to Repay CreditorsApplicant initiated a good-faith effort to repay overdue creditors.

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.”
— AG ¶ 18

Procedural Posture

SOR issuedJan 15, 2015
Answer filedFeb 13, 2015Applicant requested a decision on the written record.
Hearing held—No hearing; decision made on the written record.
Decision dateFeb 4, 2016

Cite For

Mitigation of Financial Considerations Under Guideline F
Impact of Personal Circumstances on Financial Obligations
Good-faith Efforts in Resolving Debts

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 was indebted to a creditor in the amount of $16,083, as alleged in SOR ¶ 1.a. He documented that he has a payment arrangement with a collection agent for this creditor to remit monthly payments of $200. His current balance, at the time of his response, was $14,162.19. Applicant is resolving this debt. $16,083	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 (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Documented Payment Plan with Creditor
1.b	Applicant was indebted to a creditor in the amount of $8,137, as alleged in SOR ¶ 1.b. He established a payment agreement with this creditor to make monthly payments of $200. His Response shows that his balance on this debt has decreased to $6,287.70. He is resolving this debt. $8,137	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 (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Documented Payment Plan with Creditor
1.c	Applicant was indebted to a creditor in the amount of $1,350, as alleged in SOR ¶ 1.c. His September 29, 2015 credit report reflects this debt as 'paid.' This debt is resolved. $1,350	For Applicant	Unspecified Financial	Denied	—	—	—
1.d	Applicant was indebted to a creditor in the amount of $2,150, as alleged in SOR ¶ 1.d; and $2,666, as alleged in SOR ¶ 1.e. These allegations relate to the same debt. Applicant made payment arrangements with this creditor and as of September 28, 2015, his balance had been reduced to $256. A payment of $256 was debited from his bank account by this creditor on October 5, 2015. This debt is resolved. $2,150	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 (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Documented Payment Plan with Creditor
1.e	Applicant was indebted to a creditor in the amount of $2,666, as alleged in SOR ¶ 1.e. These allegations relate to the same debt. Applicant made payment arrangements with this creditor and as of September 28, 2015, his balance had been reduced to $256. A payment of $256 was debited from his bank account by this creditor on October 5, 2015. This debt is resolved. $2,666	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 (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Documented Payment Plan with Creditor

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant was indebted to a creditor in the amount of $16,083, as alleged in SOR ¶ 1.a. He documented that he has a payment arrangement with a collection agent for this creditor to remit monthly payments of $200. His current balance, at the time of his response, was $14,162.19. Applicant is resolving this debt.

$16,083

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

(c) received/receiving counseling; problem being resolved

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

Documented

Payment Plan with Creditor

1.b

Applicant was indebted to a creditor in the amount of $8,137, as alleged in SOR ¶ 1.b. He established a payment agreement with this creditor to make monthly payments of $200. His Response shows that his balance on this debt has decreased to $6,287.70. He is resolving this debt.

$8,137

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

(c) received/receiving counseling; problem being resolved

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

Documented

Payment Plan with Creditor

1.c

Applicant was indebted to a creditor in the amount of $1,350, as alleged in SOR ¶ 1.c. His September 29, 2015 credit report reflects this debt as 'paid.' This debt is resolved.

$1,350

For Applicant

Unspecified Financial

Denied

—

1.d

Applicant was indebted to a creditor in the amount of $2,150, as alleged in SOR ¶ 1.d; and $2,666, as alleged in SOR ¶ 1.e. These allegations relate to the same debt. Applicant made payment arrangements with this creditor and as of September 28, 2015, his balance had been reduced to $256. A payment of $256 was debited from his bank account by this creditor on October 5, 2015. This debt is resolved.

$2,150

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

(c) received/receiving counseling; problem being resolved

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

Documented

Payment Plan with Creditor

1.e

Applicant was indebted to a creditor in the amount of $2,666, as alleged in SOR ¶ 1.e. These allegations relate to the same debt. Applicant made payment arrangements with this creditor and as of September 28, 2015, his balance had been reduced to $256. A payment of $256 was debited from his bank account by this creditor on October 5, 2015. This debt is resolved.

$2,666

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

(c) received/receiving counseling; problem being resolved

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

Documented

Payment Plan with Creditor

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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