ISCR Case 05-14750.h1

Case Headnote

ISCR Case No. 05-14750.h1

grantedMay 31, 2007· Hon. Kathryn Moen Braeman· hearing

Summary

A 47-year-old locksmith working for defense contractors was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The Statement of Reasons detailed numerous outstanding debts, including credit card balances, medical bills, and a loan, some dating back to 1998. Specific allegations included admitted debts to Creditor #1 ($412, referred to collections for $839), Creditor #5 ($175 medical), Creditor #6 ($2,832 credit card), Creditor #7 ($2,296 department store), Creditor #8 ($168 medical), Creditor #9 ($195 and $108 medical), and Creditor #10 ($25 medical). The applicant denied debts to Creditor #2 ($195), Creditor #4 ($184), and Creditor #11 ($3,055 loan, though a 2005 report showed it owing). He also disputed a $163 medical debt to Creditor #12.

The applicant demonstrated a good-faith effort to resolve his financial issues. He had made arrangements with Credit Solutions to consolidate several debts, including those to Creditor #6 and Creditor #7, making monthly payments of $115 over a five-to-six-year period. He also completed payment arrangements with Creditor #11 for a $2,735 debt, agreeing to pay $200 monthly starting February 2007. Additionally, he had paid two medical debts of $70 and $139 in August 2006.

The judge found that the applicant had consistently made payments on several large debts since 2006 and had a systematic plan to address his financial issues while living within his means. These mitigating factors outweighed the disqualifying conditions, leading to the decision to grant the security clearance.

Why the Applicant Prevailed

The applicant initiated a good-faith effort to repay overdue creditors and resolve debts.
He has consistently made payments on several large debts since 2006.
The applicant demonstrated a systematic plan to address his financial issues and lives within his means.

Conditions Referenced

Disqualifying

E2.A6.1.2.1raisedHistory of Not Meeting Financial Obligations
E2.A6.1.2.3raisedInability or Unwillingness to Satisfy Debts

Mitigating

E2.A6.1.3.1appliedThe Behavior Was Not Recent
E2.A6.1.3.6appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts

Key Rule Quoted

“In reaching the fair and impartial overall common sense determination, the Administrative Judge may draw only those inferences and conclusions that have a reasonable and logical basis in the evidence of record.”

Procedural Posture

SOR issuedApr 13, 2006
Answer filedApr 28, 2006Notarized response admitting in part and denying in part allegations.
Hearing heldFeb 7, 2007Conducted in a city near where the applicant works.
Decision dateMay 31, 2007

Cite For

Good-faith Efforts to Resolve Financial Issues Under Guideline F
Systematic Debt Repayment Plans as Mitigating Factors
Consideration of Whole Person Factors in Financial 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	Applicant admitted a debt to Creditor #1, for a credit card for $412 which was opened in 1998 and was charged off in May 1999. The card was referred to Creditor #3, a collection agency, with a current debt of $839. $839	For Applicant	Credit Card Debt	Admitted	—	—	—
1.b	Applicant denied a debt to Creditor #2, for $195 for a delinquent debt which was charged off in August 1999. $195	For Applicant	Unspecified Financial	Denied	—	—	—
1.c	Applicant admitted a debt to Creditor #1, for a credit card for $412 which was opened in 1998 and was charged off in May 1999. The card was referred to Creditor #3, a collection agency, with a current debt of $839. $839	For Applicant	Credit Card Debt	Admitted	—	—	—
1.d	Applicant denied a debt to Creditor #4, for a credit card for $184; he has no record of this debt. $184	For Applicant	Unspecified Financial	Denied	—	—	—
1.e	Applicant admitted a debt to Creditor #5, for $175 for a medical debt to a hospital. He mailed them a check and the check got “kicked back.” and not delivered to the collection agency; he called the number to get a better address but there was no answer. $175	For Applicant	Medical Debt	Admitted	—	—	—
1.f	Applicant admitted a debt to Creditor #6, a collection agency for a credit card for $2,832 from 2001. He made arrangements with Credit Solutions to consolidate his debts: he is paying them a monthly payment of $115 to resolve this debt and other debts over a five or six year period. $2,832	For Applicant	Credit Card Debt	Admitted	—	—	—
1.g	Applicant admitted his debt to a department store, Creditor #7, for $2,296, charged off as a bad debt in 2001. He made arrangements with Credit Solutions to consolidate his debts; he is paying them a monthly payment of $115 to resolve this debt and other debts over a five or six year period. $2,296	For Applicant	Unspecified Financial	Admitted	—	—	—
1.h	Applicant admitted a debt to Creditor #8, for $168 for a medical debt to a doctor. He mailed them a check and the check got “kicked back.” and not delivered to the collection agency; he called the number to get a better address but there was no answer. $168	For Applicant	Medical Debt	Admitted	—	—	—
1.i	Applicant admitted a debt to Creditor #9, for $195 and Creditor #9 for $108, for medical debts to a hospital. He mailed them a check and the check got “kicked back.” and not delivered to the collection agency; he called the number to get a better address but there was no answer. $303	For Applicant	Medical Debt	Admitted	—	—	—
1.j	Applicant admitted a debt to Creditor #9, for $195 and Creditor #9 for $108, for medical debts to a hospital. He mailed them a check and the check got “kicked back.” and not delivered to the collection agency; he called the number to get a better address but there was no answer. $303	For Applicant	Medical Debt	Admitted	—	—	—
1.k	Applicant admitted a debt to Creditor #10, for $25 for a medical debt placed for collection in 2002, but later stated he could not identify this creditor. $25	For Applicant	Medical Debt	Admitted	—	—	—
1.l	Applicant denied a debt to Creditor #11 as he has paid his debt to that creditor for $3,055 for a loan which was confirmed by his credit report. However, the government asserted the debt was still reflected as owing on a November 2005 credit bureau report. $3,055	For Applicant	Unspecified Financial	Denied	—	—	—
1.m	Applicant admitted a debt to Creditor #11 for a debt of $2,735, but believed he had paid that debt. After the hearing he completed payment arrangements with Creditor #11 to make a $200 payment every month beginning on February 28, 2007, to resolve this debt. $2,735	For Applicant	Unspecified Financial	Admitted	—	—	—
1.n	While Applicant admitted a medical debt to Creditor #12 for $163 placed for collection in 2003, he later claimed he had never used this doctor. Applicant stated he sent a check to a collection agency that was returned; he could not find the correct address for the collection agency. $163	For Applicant	Medical Debt	Admitted	—	—	—
1.o	Applicant has paid a $70 debt and a $139 debt to a medical facility in August 2006. $209	For Applicant	Medical Debt	Admitted	—	—	—
1.p	Applicant has paid a $70 debt and a $139 debt to a medical facility in August 2006. $209	For Applicant	Medical Debt	Admitted	—	—	—
1.q	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 admitted a debt to Creditor #1, for a credit card for $412 which was opened in 1998 and was charged off in May 1999. The card was referred to Creditor #3, a collection agency, with a current debt of $839.

$839

For Applicant

Credit Card Debt

Admitted

—

1.b

Applicant denied a debt to Creditor #2, for $195 for a delinquent debt which was charged off in August 1999.

$195

For Applicant

Unspecified Financial

Denied

—

1.c

$839

For Applicant

Credit Card Debt

Admitted

—

1.d

Applicant denied a debt to Creditor #4, for a credit card for $184; he has no record of this debt.

$184

For Applicant

Unspecified Financial

Denied

—

1.e

Applicant admitted a debt to Creditor #5, for $175 for a medical debt to a hospital. He mailed them a check and the check got “kicked back.” and not delivered to the collection agency; he called the number to get a better address but there was no answer.

$175

For Applicant

Medical Debt

Admitted

—

1.f

Applicant admitted a debt to Creditor #6, a collection agency for a credit card for $2,832 from 2001. He made arrangements with Credit Solutions to consolidate his debts: he is paying them a monthly payment of $115 to resolve this debt and other debts over a five or six year period.

$2,832

For Applicant

Credit Card Debt

Admitted

—

1.g

Applicant admitted his debt to a department store, Creditor #7, for $2,296, charged off as a bad debt in 2001. He made arrangements with Credit Solutions to consolidate his debts; he is paying them a monthly payment of $115 to resolve this debt and other debts over a five or six year period.

$2,296

For Applicant

Unspecified Financial

Admitted

—

1.h

Applicant admitted a debt to Creditor #8, for $168 for a medical debt to a doctor. He mailed them a check and the check got “kicked back.” and not delivered to the collection agency; he called the number to get a better address but there was no answer.

$168

For Applicant

Medical Debt

Admitted

—

1.i

Applicant admitted a debt to Creditor #9, for $195 and Creditor #9 for $108, for medical debts to a hospital. He mailed them a check and the check got “kicked back.” and not delivered to the collection agency; he called the number to get a better address but there was no answer.

$303

For Applicant

Medical Debt

Admitted

—

1.j

$303

For Applicant

Medical Debt

Admitted

—

1.k

Applicant admitted a debt to Creditor #10, for $25 for a medical debt placed for collection in 2002, but later stated he could not identify this creditor.

$25

For Applicant

Medical Debt

Admitted

—

1.l

Applicant denied a debt to Creditor #11 as he has paid his debt to that creditor for $3,055 for a loan which was confirmed by his credit report. However, the government asserted the debt was still reflected as owing on a November 2005 credit bureau report.

$3,055

For Applicant

Unspecified Financial

Denied

—

1.m

Applicant admitted a debt to Creditor #11 for a debt of $2,735, but believed he had paid that debt. After the hearing he completed payment arrangements with Creditor #11 to make a $200 payment every month beginning on February 28, 2007, to resolve this debt.

$2,735

For Applicant

Unspecified Financial

Admitted

—

1.n

While Applicant admitted a medical debt to Creditor #12 for $163 placed for collection in 2003, he later claimed he had never used this doctor. Applicant stated he sent a check to a collection agency that was returned; he could not find the correct address for the collection agency.

$163

For Applicant

Medical Debt

Admitted

—

1.o

Applicant has paid a $70 debt and a $139 debt to a medical facility in August 2006.

$209

For Applicant

Medical Debt

Admitted

—

1.p

Applicant has paid a $70 debt and a $139 debt to a medical facility in August 2006.

$209

For Applicant

Medical Debt

Admitted

—

1.q

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

SYNOPSIS

APPEARANCES

STATEMENT OF CASE

FINDINGS OF FACT

POLICIES

CONCLUSION

FORMAL FINDINGS

DECISION

FOOTNOTES