ISCR Case 15-00740.h1

Case Headnote

ISCR Case No. 15-00740.h1

grantedAug 31, 2016· Hon. Shari Dam· hearing

Summary

This case concerns a 47-year-old Navy veteran whose security clearance was initially questioned under Guideline F (Financial Considerations) due to multiple delinquent debts. The Statement of Reasons detailed several financial obligations, including a $157,877 mortgage with a $61,370 past due amount, which was resolved via a loan modification in August 2015. Additionally, eight private student loans totaling $58,208, taken out between 2005 and 2008, were addressed with a negotiated payment plan in April 2016. Two other student loans totaling $6,830 were fully repaid by May 2016.

Other debts included a $3,052 automobile loan paid in October 2014, and a $2,011 automobile loan with an $87 past due amount, paid in full by May 2016. The applicant also began making monthly payments on a $1,485 credit card debt and a $763 medical debt in April 2016. Several smaller medical debts were paid between 2010 and 2016, including a $505 debt in February 2014, a $396 debt in September 2010, and a $45 debt in July 2016. A $93 medical debt was deemed sufficiently resolved despite unlocatable payment verification.

The decision to grant the security clearance was based on the applicant's demonstrated significant financial improvement, including salary increases and bonuses, and a good-faith effort to resolve outstanding debts. The applicant provided a budget showing financial stability, made payments on multiple debts, and established repayment plans, leading to the application of mitigating conditions and the ultimate granting of the clearance.

Why the Applicant Prevailed

The applicant provided evidence of a budget showing financial stability and a plan to resolve debts.
The applicant's financial situation improved significantly due to salary increases and bonuses.
The applicant made payments on multiple debts and established a repayment plan for student loans.

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(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
AG ¶ 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts

Key Rule Quoted

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

Procedural Posture

SOR issuedAug 20, 2015
Answer filedSep 1, 2015
Hearing heldMay 10, 2016
Decision dateAug 31, 2016

Cite For

Mitigation of Financial Issues Under Guideline F
Good-faith Efforts to Resolve Debts
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 $61,370 past due amount owed on Applicant’s $157,877 mortgage was resolved in August 2015 with a loan modification agreement. $61,370	For Applicant	Mortgage or Home Loan Debt	Admitted	—	(c) received/receiving counseling; problem being resolved	Documented Debt Paid in Full
1.b	Eight delinquent student loans owed to a private company totaling $58,208 were taken out between 2005 and 2008. In April 2016 he negotiated a payment plan. $58,208	For Applicant	Student Loan Debt	Admitted	—	(c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Documented Payment Plan with Creditor
1.h	Two student loans that totaled $6,830 were fully repaid as of May 2016. $6,830	For Applicant	Student Loan Debt	Admitted	—	—	Documented Debt Paid in Full
1.k	The $3,052 delinquent automobile loan was paid in October 2014. $3,052	For Applicant	Auto Loan Debt	Admitted	—	—	Documented Debt Paid in Full
1.l	The $2,011 automobile loan had a past due amount of $87. The loan was paid in full in May 2016. $2,011	For Applicant	Auto Loan Debt	Admitted	—	—	Documented Debt Paid in Full
1.n	The $1,485 debt owed to a credit card company is being paid through monthly payments of $50. Applicant began those payments in April 2016. $1,485	For Applicant	Credit Card Debt	Admitted	—	(c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Documented Payment Plan with Creditor
1.o	The $763 medical debt is being paid through monthly payments of $75 which started in April 2016. $763	For Applicant	Medical Debt	Admitted	—	—	Documented Payment Plan with Creditor
1.p	The $505 medical debt was paid in February 2014. $505	For Applicant	Medical Debt	Admitted	—	—	Documented Debt Paid in Full
1.q	The $396 medical debt was paid in September 2010. $396	For Applicant	Medical Debt	Admitted	—	—	Documented Debt Paid in Full
1.r	Applicant cannot locate a payment verification for this $93 medical debt in his bank statements or with the creditor. It appears on the May 2014 CBR, but no subsequent CBRs. It is sufficiently resolved. $93	For Applicant	Medical Debt	Admitted	—	—	Documented Debt Paid in Full
1.s	The $45 medical debt was paid in July 2016. $45	For Applicant	Medical Debt	Admitted	—	—	Documented Debt Paid in Full

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

The $61,370 past due amount owed on Applicant’s $157,877 mortgage was resolved in August 2015 with a loan modification agreement.

$61,370

For Applicant

Mortgage or Home Loan Debt

Admitted

—

(c) received/receiving counseling; problem being resolved

Documented

Debt Paid in Full

1.b

Eight delinquent student loans owed to a private company totaling $58,208 were taken out between 2005 and 2008. In April 2016 he negotiated a payment plan.

$58,208

For Applicant

Student Loan Debt

Admitted

—

(c) received/receiving counseling; problem being resolved

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

Documented

Payment Plan with Creditor

1.h

Two student loans that totaled $6,830 were fully repaid as of May 2016.

$6,830

For Applicant

Student Loan Debt

Admitted

—

Documented

Debt Paid in Full

1.k

The $3,052 delinquent automobile loan was paid in October 2014.

$3,052

For Applicant

Auto Loan Debt

Admitted

—

Documented

Debt Paid in Full

1.l

The $2,011 automobile loan had a past due amount of $87. The loan was paid in full in May 2016.

$2,011

For Applicant

Auto Loan Debt

Admitted

—

Documented

Debt Paid in Full

1.n

The $1,485 debt owed to a credit card company is being paid through monthly payments of $50. Applicant began those payments in April 2016.

$1,485

For Applicant

Credit Card Debt

Admitted

—

(c) received/receiving counseling; problem being resolved

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

Documented

Payment Plan with Creditor

1.o

The $763 medical debt is being paid through monthly payments of $75 which started in April 2016.

$763

For Applicant

Medical Debt

Admitted

—

Documented

Payment Plan with Creditor

1.p

The $505 medical debt was paid in February 2014.

$505

For Applicant

Medical Debt

Admitted

—

Documented

Debt Paid in Full

1.q

The $396 medical debt was paid in September 2010.

$396

For Applicant

Medical Debt

Admitted

—

Documented

Debt Paid in Full

1.r

Applicant cannot locate a payment verification for this $93 medical debt in his bank statements or with the creditor. It appears on the May 2014 CBR, but no subsequent CBRs. It is sufficiently resolved.

$93

For Applicant

Medical Debt

Admitted

—

Documented

Debt Paid in Full

1.s

The $45 medical debt was paid in July 2016.

$45

For Applicant

Medical Debt

Admitted

—

Documented

Debt Paid in Full

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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