ISCR Case 15-00797.h1

Case Headnote

ISCR Case No. 15-00797.h1

grantedApr 24, 2017· Hon. Shari Dam· hearing

Summary

A 40-year-old male applicant, holding a security clearance since 1998, faced concerns under Guideline F (Financial Considerations) due to delinquent debts and unfiled federal tax returns. The Statement of Reasons detailed five specific debts: a $485 credit card debt, a $15,077 credit card debt, a $197 cell phone debt, a $136 medical bill, and a $101 cable bill. Four of these debts were joint accounts with his former wife and had become delinquent between 2010 and 2013.

The applicant successfully mitigated these concerns by demonstrating that the financial issues largely stemmed from a contentious divorce. He resolved four of the five delinquent debts, paying the $101 cable bill in November 2015, the $136 medical bill in January 2016, and both the $485 credit card debt and $197 cell phone debt in April 2016. For the $15,077 credit card debt, which originally totaled $16,252, he resumed monthly payments of $100 in May 2016, reducing the balance to $13,477 by November 2016.

Furthermore, the applicant filed all delinquent federal tax returns in August 2014 and has maintained current tax obligations since. He also completed a budgeting and debt reduction course, demonstrating a commitment to financial responsibility. Based on these mitigating actions, the administrative judge granted the applicant's eligibility for access to classified information.

Why the Applicant Prevailed

The applicant filed all delinquent Federal tax returns in August 2014 and has since remained current on his tax obligations.
The applicant has paid four of the five delinquent debts and is making regular payments on the remaining debt.
The applicant demonstrated a commitment to financial responsibility by completing a budgeting and debt reduction course.

Conditions Referenced

Disqualifying

F.1.araisedInability or Unwillingness to Satisfy Debts
F.1.craisedA History of Not Meeting Financial Obligations
F.1.graisedFailure to File Annual Federal, State, or Local Income Tax Returns as Required

Mitigating

F.2.aappliedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
F.2.bappliedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
F.2.cappliedThe 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
F.2.dappliedThe 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 issuedMar 24, 2016
Answer filedMay 2, 2016
Hearing heldDec 7, 2016
Decision dateApr 24, 2017

Cite For

Mitigation of Financial Issues Under Guideline F Due to Personal Circumstances
Successful Resolution of Delinquent Debts and Tax Filings
Importance of Demonstrating Financial Responsibility and Proactive Measures Taken

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 $485 credit card debt was paid on April 15, 2016. It was a joint account with his former wife that was charged off in 2013. $485	For Applicant	Credit Card Debt	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.b	The $15,077 credit card debt is being paid monthly. The original debt was $16,252. Between 2012 and 2013, Applicant paid $1,175 toward the debt. He then stopped because he was unable to afford the payments. In May 2016, he resumed monthly payments of $100. As of November 2016, he reduced the balance to $13,477. He intends to continue those payments until the debt is paid. $15,077	For Applicant	Credit Card Debt	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Payment Plan with Creditor
1.c	The $197 cell phone debt was paid on April 15, 2016. It was a joint account with his former wife that became delinquent in 2012. $197	For Applicant	Utility or Phone Debt	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.d	The $136 medical bill was paid on January 4, 2016. It was a joint account Applicant had with his former wife that became delinquent in 2010. $136	For Applicant	Medical Debt	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.e	The $101 cable bill was paid on November 30, 2015. It was a joint account Applicant had with his former wife that became delinquent in 2013. $101	For Applicant	Utility or Phone Debt	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.f	specific text not stated in this decision	For Applicant	Unspecified Financial	Unknown	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

The $485 credit card debt was paid on April 15, 2016. It was a joint account with his former wife that was charged off in 2013.

$485

For Applicant

Credit Card Debt

Admitted

—

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

Documented

Debt Paid in Full

1.b

The $15,077 credit card debt is being paid monthly. The original debt was $16,252. Between 2012 and 2013, Applicant paid $1,175 toward the debt. He then stopped because he was unable to afford the payments. In May 2016, he resumed monthly payments of $100. As of November 2016, he reduced the balance to $13,477. He intends to continue those payments until the debt is paid.

$15,077

For Applicant

Credit Card Debt

Admitted

—

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

Documented

Payment Plan with Creditor

1.c

The $197 cell phone debt was paid on April 15, 2016. It was a joint account with his former wife that became delinquent in 2012.

$197

For Applicant

Utility or Phone Debt

Admitted

—

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

Documented

Debt Paid in Full

1.d

The $136 medical bill was paid on January 4, 2016. It was a joint account Applicant had with his former wife that became delinquent in 2010.

$136

For Applicant

Medical Debt

Admitted

—

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

Documented

Debt Paid in Full

1.e

The $101 cable bill was paid on November 30, 2015. It was a joint account Applicant had with his former wife that became delinquent in 2013.

$101

For Applicant

Utility or Phone Debt

Admitted

—

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

Documented

Debt Paid in Full

1.f

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

APPEARANCES

STATEMENT OF CASE

FINDINGS OF FACT

POLICIES

ANALYSIS

WHOLE PERSON CONCEPT

FORMAL FINDINGS

CONCLUSION

FOOTNOTES