ISCR Case 15-00865.h1

Case Headnote

ISCR Case No. 15-00865.h1

deniedJul 29, 2016· Hon. Shari Dam· hearing

Summary

A 34-year-old woman's security clearance application was denied under Guideline F (Financial Considerations) due to a history of delinquent debts and unresolved tax issues spanning from 2007 to 2009. The Statement of Reasons detailed several outstanding obligations, including unpaid medical debts of $208 and $26, and credit card debts of $1,697 and $946, for which she stated an inability to locate the creditors.

While some debts were resolved, such as a $625 credit card debt paid in November 2015 and a $558 department store debt paid in 2012, others remained partially addressed or unresolved. A $544 credit card debt was placed on a payment plan, with a $50 payment made in April 2016, leaving a balance of $504. Student loans totaling $6,812 saw a $227 payment in February 2016, with the applicant indicating a rehabilitation plan requiring additional payments. Another $585 credit card debt was being paid through monthly $48 installments, reducing the balance to $243.

The denial was based on the applicant's failure to resolve multiple delinquent debts exceeding $17,000, her untimely filing of 2009 state and federal tax returns, and the absence of evidence for financial counseling or a comprehensive debt resolution plan. Despite some efforts to address her financial obligations, the judge found insufficient evidence of financial responsibility and resolution of outstanding issues.

Why the Applicant Was Denied

The applicant failed to resolve multiple delinquent debts totaling over $17,000.
She did not file her 2009 state and federal tax returns on time, raising concerns about her judgment and reliability.
The applicant did not provide evidence of financial counseling or a detailed plan to address her debts.

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.brejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlLimited application due to insufficient evidence of responsible management of debts.
F.2.dappliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant paid or is paying some debts.

Key Rule Quoted

“Any doubt concerning personnel being considered for access to classified information will be resolved in favor of national security.”

Procedural Posture

SOR issuedSep 29, 2015
Answer filedOct 26, 2015
Hearing heldApr 5, 2016
Decision dateJul 29, 2016

Cite For

Insufficient Evidence of Financial Responsibility Under Guideline F
Impact of Unresolved Tax Issues on Security Clearance Eligibility
Consideration of the Whole-person Concept 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	The $208 medical debt is unpaid. Applicant said she is unable to locate the creditor. $208	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts	—	—
1.b	The $625 credit card debt owed to a retailor was paid in November 2015. It is resolved. $625	For Applicant	Credit Card Debt	Admitted	—	—	—
1.d	The $1,697 debt owed to a credit card company is unpaid. Applicant said she has been unsuccessful with her communications with the company. $1,697	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts	—	—
1.e	The $544 debts owed to a credit card company was recently placed on a monthly payment plan. In April 2016 she paid $50. The balance is $504. It is being resolved. $544	For Applicant	Credit Card Debt	Admitted	—	—	—
1.h	The $6,812 alleged is owed to the holder of Applicant’s student loans. In February 2016 she made a $227 payment on the loans. She said she was required to make seven or eight payments, in order to put the loans into a rehabilitated status. She said that the payments were automatically deducted from her bank account. $6,812	Against Applicant	Student Loan Debt	Admitted	(a) inability to satisfy debts	—	—
1.i	The $585 debt owed to a credit card company is being paid through monthly payments of $48. Applicant began those payments in March 2016. The balance is $243. $585	For Applicant	Credit Card Debt	Admitted	—	—	—
1.j	The $26 medical bill is unresolved. She does not know the nature of the bill. $26	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts	—	—
1.l	The $558 debt owed to a department store was paid in 2012. $558	For Applicant	Unspecified Financial	Admitted	—	—	—
1.o	The $946 debt owed to a creditor is unpaid and unresolved. Applicant cannot locate the creditor. $946	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

The $208 medical debt is unpaid. Applicant said she is unable to locate the creditor.

$208

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

—

1.b

The $625 credit card debt owed to a retailor was paid in November 2015. It is resolved.

$625

For Applicant

Credit Card Debt

Admitted

—

1.d

The $1,697 debt owed to a credit card company is unpaid. Applicant said she has been unsuccessful with her communications with the company.

$1,697

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

—

1.e

The $544 debts owed to a credit card company was recently placed on a monthly payment plan. In April 2016 she paid $50. The balance is $504. It is being resolved.

$544

For Applicant

Credit Card Debt

Admitted

—

1.h

The $6,812 alleged is owed to the holder of Applicant’s student loans. In February 2016 she made a $227 payment on the loans. She said she was required to make seven or eight payments, in order to put the loans into a rehabilitated status. She said that the payments were automatically deducted from her bank account.

$6,812

Against Applicant

Student Loan Debt

Admitted

(a) inability to satisfy debts

—

1.i

The $585 debt owed to a credit card company is being paid through monthly payments of $48. Applicant began those payments in March 2016. The balance is $243.

$585

For Applicant

Credit Card Debt

Admitted

—

1.j

The $26 medical bill is unresolved. She does not know the nature of the bill.

$26

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

—

1.l

The $558 debt owed to a department store was paid in 2012.

$558

For Applicant

Unspecified Financial

Admitted

—

1.o

The $946 debt owed to a creditor is unpaid and unresolved. Applicant cannot locate the creditor.

$946

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

—

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Case Profile

Summary

Why the Applicant Was Denied

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