ISCR Case 14-03976.h1

Case Headnote

ISCR Case No. 14-03976.h1

grantedMar 27, 2015· Hon. Carol G. Ricciardello· hearing

Summary

This case concerns a 54-year-old male applicant whose security clearance was initially questioned under Guideline F (Financial Considerations) due to significant medical debts. The Statement of Reasons detailed several specific financial allegations. These included a $1,059 bank loan for medicine, which the bank had charged off and could not accept payment for, and a $9,929 medical debt from surgery that the applicant was unable to pay but intended to address. Other unresolved medical debts included an $834 obligation where the creditor refused negotiation, and a substantial $34,044 hospital bill from a heart attack when the applicant lacked insurance, which the creditor also declined to negotiate.

Despite these challenges, the applicant demonstrated proactive efforts to resolve his financial issues. He successfully settled a $786 medical debt for $500 in November 2014 and paid an $80 debt in the same month. He also made a $275 payment on a $550 medical debt in November 2014 and established monthly payments of $25. Furthermore, he paid $1,543 in November 2014 to settle multiple medical debts with a single creditor.

The security clearance was ultimately GRANTED. This decision was based on the applicant's demonstrated pattern of responsible behavior in addressing his medical debts, including consistent payments and the settlement of several obligations. The adjudicator recognized that the applicant's financial difficulties were largely due to serious medical issues, circumstances beyond his control.

Why the Applicant Prevailed

The applicant demonstrated a pattern of addressing his medical debts responsibly.
He provided evidence of consistent payments to creditors and settled several debts.
The applicant's financial difficulties were largely due to circumstances beyond his control, including serious medical issues.

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(c)appliedThe Person Has Received or Is Receiving Counseling for the Problem And/or There Are Clear Indications That the Problem Is Being Resolved or Is Under Control

Key Rule Quoted

“The protection of the national security is the paramount consideration.”

Procedural Posture

SOR issuedOct 17, 2014
Answer filedNov 21, 2014
Hearing heldMar 10, 2015
Decision dateMar 27, 2015

Cite For

Mitigation of Financial Issues Under Guideline F Due to Medical Circumstances
Responsible Behavior in Addressing Medical Debts
Whole-person Analysis 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	The debt in SOR ¶ 1.a ($1,059) was a loan from a bank. Applicant used the money to purchase medicine. After he was employed he went into the bank with $1,000 in cash to settle the debt, but he was told the debt was charged-off, and the bank could not accept his payment. $1,059	For Applicant	Personal 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	Claimed Other
1.b	The debt in SOR ¶ 1.b ($9,929) is a medical debt related to a surgery. He contacted the creditor and attempted to negotiate a payment plan He was unsuccessful. He is not able to pay this debt at this time, but intends to pay it in the future. $9,929	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	Claimed Other
1.c	The debt in SOR ¶ 1.c ($834) is a medical debt. The creditor refused to negotiate a settlement. Applicant was unable to pay it in full, but intends to pay it in the future. It remains unresolved. $834	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	Claimed Other
1.d	The debt in SOR ¶ 1.d ($786) is a medical debt. The creditor agreed to accept a settlement to pay the debt for $500. Applicant paid the settlement in November 2014. He provided a supporting document to verify payment. $786	For Applicant	Medical Debt	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.e	The debt in SOR 1.e ($550) is a medical debt. Applicant made a payment of $275 in November 2014 and is making monthly payments of $25 until it is resolved. $550	For Applicant	Medical Debt	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Payment Plan with Creditor
1.f	The debts in SOR ¶¶ 1.f through 1.m, and 1.o are to the same creditor and are medical debts. Applicant paid $1,543 in November 2014 to settle these debts. $1,543	For Applicant	Medical Debt	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.n	He paid the debt in SOR ¶ 1.n ($80) in November 2014. $80	For Applicant	Medical Debt	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.o	specific text not stated in this decision	For Applicant	Unspecified Financial	Unknown	—	—	—
1.p	The debt in SOR ¶ 1.p ($34,044) is for the hospital stay when Applicant had a heart attack and did not have medical insurance. He contacted the creditor and told it he was unable to pay the bill at this time. The creditor did not want to negotiate a settlement. The debt is unresolved. $34,044	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	Claimed Other

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

The debt in SOR ¶ 1.a ($1,059) was a loan from a bank. Applicant used the money to purchase medicine. After he was employed he went into the bank with $1,000 in cash to settle the debt, but he was told the debt was charged-off, and the bank could not accept his payment.

$1,059

For Applicant

Personal 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

Claimed

Other

1.b

The debt in SOR ¶ 1.b ($9,929) is a medical debt related to a surgery. He contacted the creditor and attempted to negotiate a payment plan He was unsuccessful. He is not able to pay this debt at this time, but intends to pay it in the future.

$9,929

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

Claimed

Other

1.c

The debt in SOR ¶ 1.c ($834) is a medical debt. The creditor refused to negotiate a settlement. Applicant was unable to pay it in full, but intends to pay it in the future. It remains unresolved.

$834

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

Claimed

Other

1.d

The debt in SOR ¶ 1.d ($786) is a medical debt. The creditor agreed to accept a settlement to pay the debt for $500. Applicant paid the settlement in November 2014. He provided a supporting document to verify payment.

$786

For Applicant

Medical Debt

Admitted

—

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

Documented

Debt Paid in Full

1.e

The debt in SOR 1.e ($550) is a medical debt. Applicant made a payment of $275 in November 2014 and is making monthly payments of $25 until it is resolved.

$550

For Applicant

Medical Debt

Admitted

—

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

Documented

Payment Plan with Creditor

1.f

The debts in SOR ¶¶ 1.f through 1.m, and 1.o are to the same creditor and are medical debts. Applicant paid $1,543 in November 2014 to settle these debts.

$1,543

For Applicant

Medical Debt

Admitted

—

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

Documented

Debt Paid in Full

1.n

He paid the debt in SOR ¶ 1.n ($80) in November 2014.

$80

For Applicant

Medical Debt

Admitted

—

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

Documented

Debt Paid in Full

1.o

specific text not stated in this decision

For Applicant

Unspecified Financial

Unknown

—

1.p

The debt in SOR ¶ 1.p ($34,044) is for the hospital stay when Applicant had a heart attack and did not have medical insurance. He contacted the creditor and told it he was unable to pay the bill at this time. The creditor did not want to negotiate a settlement. The debt is unresolved.

$34,044

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

Claimed

Other

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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