ISCR Case 15-04054.h1

Case Headnote

ISCR Case No. 15-04054.h1

grantedAug 2, 2016· Hon. Shari Dam· hearing

Summary

A 55-year-old applicant with a Ph.D. was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The Statement of Reasons (SOR) cited 26 delinquent debts, primarily from unpaid medical bills, along with an unpaid mortgage balance of $10,663, including late fees and one month's payment, and a $106,114 mortgage on a rental property. Other debts included a $566 cell phone bill, a $409 internet bill, a $100 retail store debt, a $729 gas bill, and a $3,033 car loan.

The applicant successfully resolved 23 of the 26 listed debts. The $106,114 mortgage on the rental home was resolved through a short sale in December 2015. The $566 cell phone debt and $409 internet debt were disputed and removed from her credit report. Multiple medical debts owed to creditors C.C.1 and C.F.2 were paid, as were the $100 retail store debt in April 2016, the $729 gas bill in April 2016, and the $3,033 car loan, which was settled and paid in February 2015. She is actively resolving the remaining $10,663 mortgage balance, having negotiated a smaller monthly payment and making larger payments to address the arrears.

The decision to grant the clearance was based on the applicant's demonstrated good-faith effort to resolve her financial issues, including providing evidence of a workable budget and stable income. Her proactive measures to monitor her credit and her credibility also contributed to the favorable outcome.

Why the Applicant Prevailed

The applicant resolved 23 of the 26 debts listed in the SOR, demonstrating a good-faith effort to address her financial issues.
She provided evidence of a workable budget and a stable income, indicating her financial situation is under control.
The applicant's credibility and proactive measures to monitor her credit contributed to the judge's favorable decision.

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(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
AG ¶ 20(e)appliedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due Debt Which Is the Cause of the Problem

Key Rule Quoted

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

Procedural Posture

SOR issuedDec 7, 2015
Answer filedDec 29, 2015
Hearing heldApr 8, 2016
Decision dateAug 2, 2016

Cite For

Mitigation of Financial Issues Under Guideline F
Good-faith Efforts to Resolve Debts
Consideration of the Whole-person Concept 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	Applicant is resolving an unpaid mortgage balance of $10,663, which includes late fees of $6,444 and one month’s payment of $2,100. She said she fell behind in the payments when she was unemployed for four months before obtaining her current position. She subsequently negotiated a smaller monthly payment that is $300 less than the previous one. She is trying to resolve the unpaid balance by making larger payments. (Tr. 28-31; AE A.) The debt is being resolved. $10,663	For Applicant	Mortgage or Home Loan Debt	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.b	The unpaid mortgage of $106,114, relating to a rental home Applicant owned, was recently resolved through a short sale. She said that she received an offer in December 2015 and subsequently sold it. She said she does not owe anything on the mortgage and is waiting for a 1099-C. Her mortgage company told her she will not receive that form until January 2017. (Tr. 22: AE Q.) It is resolved. $106,114	For Applicant	Mortgage or Home Loan Debt	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.c	The following medical debts owed to creditor C.C.1 are paid: SOR ¶ 1.c ($769); SOR ¶ 1.h ($188); SOR ¶ 1.j ($138); SOR ¶ 1.k ($130); SOR ¶ 1.l ($110); SOR ¶ 1.n ($97); SOR ¶ 1.o ($95); SOR ¶ 1.r ($54); SOR ¶ 1.s ($50.); SOR ¶ 1.t ($50); and SOR ¶ 1.u ($50). (AE O, AE N, AE S.) $769	For Applicant	Medical Debt	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.d	The $566 cell phone debt was disputed and removed from her credit report. (AE D.) It is resolved. $566	For Applicant	Unspecified Financial	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Disputed with Creditor
1.e	The $409 internet debt was disputed and removed from her credit report. (AE D.) It is resolved. $409	For Applicant	Unspecified Financial	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Disputed with Creditor
1.f–1.g	2 sub-charges — specific text not stated in this decision (for the applicant). (low confidence)	For Applicant			—	—	—
1.h	The following medical debts owed to creditor C.C.1 are paid: SOR ¶ 1.c ($769); SOR ¶ 1.h ($188); SOR ¶ 1.j ($138); SOR ¶ 1.k ($130); SOR ¶ 1.l ($110); SOR ¶ 1.n ($97); SOR ¶ 1.o ($95); SOR ¶ 1.r ($54); SOR ¶ 1.s ($50.); SOR ¶ 1.t ($50); and SOR ¶ 1.u ($50). (AE O, AE N, AE S.) $188	For Applicant	Medical Debt	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.i	specific text not stated in this decision	For Applicant	Unspecified Financial	Unknown	—	—	—
1.j	The following medical debts owed to creditor C.C.1 are paid: SOR ¶ 1.c ($769); SOR ¶ 1.h ($188); SOR ¶ 1.j ($138); SOR ¶ 1.k ($130); SOR ¶ 1.l ($110); SOR ¶ 1.n ($97); SOR ¶ 1.o ($95); SOR ¶ 1.r ($54); SOR ¶ 1.s ($50.); SOR ¶ 1.t ($50); and SOR ¶ 1.u ($50). (AE O, AE N, AE S.) $138	For Applicant	Medical Debt	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.k	The following medical debts owed to creditor C.C.1 are paid: SOR ¶ 1.c ($769); SOR ¶ 1.h ($188); SOR ¶ 1.j ($138); SOR ¶ 1.k ($130); SOR ¶ 1.l ($110); SOR ¶ 1.n ($97); SOR ¶ 1.o ($95); SOR ¶ 1.r ($54); SOR ¶ 1.s ($50.); SOR ¶ 1.t ($50); and SOR ¶ 1.u ($50). (AE O, AE N, AE S.) $130	For Applicant	Medical Debt	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.l	The following medical debts owed to creditor C.C.1 are paid: SOR ¶ 1.c ($769); SOR ¶ 1.h ($188); SOR ¶ 1.j ($138); SOR ¶ 1.k ($130); SOR ¶ 1.l ($110); SOR ¶ 1.n ($97); SOR ¶ 1.o ($95); SOR ¶ 1.r ($54); SOR ¶ 1.s ($50.); SOR ¶ 1.t ($50); and SOR ¶ 1.u ($50). (AE O, AE N, AE S.) $110	For Applicant	Medical Debt	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.m	The $100 debt owed to a retail store was paid in April 2016. (AE F.) $100	For Applicant	Unspecified Financial	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.n	The following medical debts owed to creditor C.C.1 are paid: SOR ¶ 1.c ($769); SOR ¶ 1.h ($188); SOR ¶ 1.j ($138); SOR ¶ 1.k ($130); SOR ¶ 1.l ($110); SOR ¶ 1.n ($97); SOR ¶ 1.o ($95); SOR ¶ 1.r ($54); SOR ¶ 1.s ($50.); SOR ¶ 1.t ($50); and SOR ¶ 1.u ($50). (AE O, AE N, AE S.) $97	For Applicant	Medical Debt	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.o	The following medical debts owed to creditor C.C.1 are paid: SOR ¶ 1.c ($769); SOR ¶ 1.h ($188); SOR ¶ 1.j ($138); SOR ¶ 1.k ($130); SOR ¶ 1.l ($110); SOR ¶ 1.n ($97); SOR ¶ 1.o ($95); SOR ¶ 1.r ($54); SOR ¶ 1.s ($50.); SOR ¶ 1.t ($50); and SOR ¶ 1.u ($50). (AE O, AE N, AE S.) $95	For Applicant	Medical Debt	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.p	The following medical debts owed to creditor C.F.2 are paid: SOR ¶ 1.p ($64); SOR ¶ 1.q ($53); SOR ¶ 1.v ($37); and SOR ¶ 1.w ($37). (Tr. 41-44; AE E.) $64	For Applicant	Medical Debt	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.q	The following medical debts owed to creditor C.F.2 are paid: SOR ¶ 1.p ($64); SOR ¶ 1.q ($53); SOR ¶ 1.v ($37); and SOR ¶ 1.w ($37). (Tr. 41-44; AE E.) $53	For Applicant	Medical Debt	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.r	The following medical debts owed to creditor C.C.1 are paid: SOR ¶ 1.c ($769); SOR ¶ 1.h ($188); SOR ¶ 1.j ($138); SOR ¶ 1.k ($130); SOR ¶ 1.l ($110); SOR ¶ 1.n ($97); SOR ¶ 1.o ($95); SOR ¶ 1.r ($54); SOR ¶ 1.s ($50.); SOR ¶ 1.t ($50); and SOR ¶ 1.u ($50). (AE O, AE N, AE S.) $54	For Applicant	Medical Debt	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.s	The following medical debts owed to creditor C.C.1 are paid: SOR ¶ 1.c ($769); SOR ¶ 1.h ($188); SOR ¶ 1.j ($138); SOR ¶ 1.k ($130); SOR ¶ 1.l ($110); SOR ¶ 1.n ($97); SOR ¶ 1.o ($95); SOR ¶ 1.r ($54); SOR ¶ 1.s ($50.); SOR ¶ 1.t ($50); and SOR ¶ 1.u ($50). (AE O, AE N, AE S.) $50	For Applicant	Medical Debt	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.t	The following medical debts owed to creditor C.C.1 are paid: SOR ¶ 1.c ($769); SOR ¶ 1.h ($188); SOR ¶ 1.j ($138); SOR ¶ 1.k ($130); SOR ¶ 1.l ($110); SOR ¶ 1.n ($97); SOR ¶ 1.o ($95); SOR ¶ 1.r ($54); SOR ¶ 1.s ($50.); SOR ¶ 1.t ($50); and SOR ¶ 1.u ($50). (AE O, AE N, AE S.) $50	For Applicant	Medical Debt	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.u	The following medical debts owed to creditor C.C.1 are paid: SOR ¶ 1.c ($769); SOR ¶ 1.h ($188); SOR ¶ 1.j ($138); SOR ¶ 1.k ($130); SOR ¶ 1.l ($110); SOR ¶ 1.n ($97); SOR ¶ 1.o ($95); SOR ¶ 1.r ($54); SOR ¶ 1.s ($50.); SOR ¶ 1.t ($50); and SOR ¶ 1.u ($50). (AE O, AE N, AE S.) $50	For Applicant	Medical Debt	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.v	The following medical debts owed to creditor C.F.2 are paid: SOR ¶ 1.p ($64); SOR ¶ 1.q ($53); SOR ¶ 1.v ($37); and SOR ¶ 1.w ($37). (Tr. 41-44; AE E.) $37	For Applicant	Medical Debt	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.w	The following medical debts owed to creditor C.F.2 are paid: SOR ¶ 1.p ($64); SOR ¶ 1.q ($53); SOR ¶ 1.v ($37); and SOR ¶ 1.w ($37). (Tr. 41-44; AE E.) $37	For Applicant	Medical Debt	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.x	The $100 debt owed to a retail store was paid in April 2016. (AE F.) $100	For Applicant	Unspecified Financial	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.y	The $729 gas bill from Applicant’s rental property was paid in April 2016. (AE M.) $729	For Applicant	Utility or Phone Debt	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.z	The $3,033 debt owed for a car loan was settled and paid in February 2015. (Tr. 46-47; AE H.) $3,033	For Applicant	Auto Loan Debt	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant is resolving an unpaid mortgage balance of $10,663, which includes late fees of $6,444 and one month’s payment of $2,100. She said she fell behind in the payments when she was unemployed for four months before obtaining her current position. She subsequently negotiated a smaller monthly payment that is $300 less than the previous one. She is trying to resolve the unpaid balance by making larger payments. (Tr. 28-31; AE A.) The debt is being resolved.

$10,663

For Applicant

Mortgage or Home Loan Debt

Admitted

—

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

Documented

Debt Paid in Full

1.b

The unpaid mortgage of $106,114, relating to a rental home Applicant owned, was recently resolved through a short sale. She said that she received an offer in December 2015 and subsequently sold it. She said she does not owe anything on the mortgage and is waiting for a 1099-C. Her mortgage company told her she will not receive that form until January 2017. (Tr. 22: AE Q.) It is resolved.

$106,114

For Applicant

Mortgage or Home Loan Debt

Admitted

—

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

Documented

Debt Paid in Full

1.c

The following medical debts owed to creditor C.C.1 are paid: SOR ¶ 1.c ($769); SOR ¶ 1.h ($188); SOR ¶ 1.j ($138); SOR ¶ 1.k ($130); SOR ¶ 1.l ($110); SOR ¶ 1.n ($97); SOR ¶ 1.o ($95); SOR ¶ 1.r ($54); SOR ¶ 1.s ($50.); SOR ¶ 1.t ($50); and SOR ¶ 1.u ($50). (AE O, AE N, AE S.)

$769

For Applicant

Medical Debt

Admitted

—

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

Documented

Debt Paid in Full

1.d

The $566 cell phone debt was disputed and removed from her credit report. (AE D.) It is resolved.

$566

For Applicant

Unspecified Financial

Admitted

—

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

Documented

Debt Disputed with Creditor

1.e

The $409 internet debt was disputed and removed from her credit report. (AE D.) It is resolved.

$409

For Applicant

Unspecified Financial

Admitted

—

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

Documented

Debt Disputed with Creditor

1.f–1.g

2 sub-charges — specific text not stated in this decision (for the applicant). (low confidence)

For Applicant

—

1.h

$188

For Applicant

Medical Debt

Admitted

—

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

Documented

Debt Paid in Full

1.i

specific text not stated in this decision

For Applicant

Unspecified Financial

Unknown

—

1.j

$138

For Applicant

Medical Debt

Admitted

—

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

Documented

Debt Paid in Full

1.k

$130

For Applicant

Medical Debt

Admitted

—

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

Documented

Debt Paid in Full

1.l

$110

For Applicant

Medical Debt

Admitted

—

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

Documented

Debt Paid in Full

1.m

The $100 debt owed to a retail store was paid in April 2016. (AE F.)

$100

For Applicant

Unspecified Financial

Admitted

—

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

Documented

Debt Paid in Full

1.n

$97

For Applicant

Medical Debt

Admitted

—

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

Documented

Debt Paid in Full

1.o

$95

For Applicant

Medical Debt

Admitted

—

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

Documented

Debt Paid in Full

1.p

The following medical debts owed to creditor C.F.2 are paid: SOR ¶ 1.p ($64); SOR ¶ 1.q ($53); SOR ¶ 1.v ($37); and SOR ¶ 1.w ($37). (Tr. 41-44; AE E.)

$64

For Applicant

Medical Debt

Admitted

—

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

Documented

Debt Paid in Full

1.q

The following medical debts owed to creditor C.F.2 are paid: SOR ¶ 1.p ($64); SOR ¶ 1.q ($53); SOR ¶ 1.v ($37); and SOR ¶ 1.w ($37). (Tr. 41-44; AE E.)

$53

For Applicant

Medical Debt

Admitted

—

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

Documented

Debt Paid in Full

1.r

$54

For Applicant

Medical Debt

Admitted

—

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

Documented

Debt Paid in Full

1.s

$50

For Applicant

Medical Debt

Admitted

—

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

Documented

Debt Paid in Full

1.t

$50

For Applicant

Medical Debt

Admitted

—

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

Documented

Debt Paid in Full

1.u

$50

For Applicant

Medical Debt

Admitted

—

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

Documented

Debt Paid in Full

1.v

The following medical debts owed to creditor C.F.2 are paid: SOR ¶ 1.p ($64); SOR ¶ 1.q ($53); SOR ¶ 1.v ($37); and SOR ¶ 1.w ($37). (Tr. 41-44; AE E.)

$37

For Applicant

Medical Debt

Admitted

—

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

Documented

Debt Paid in Full

1.w

The following medical debts owed to creditor C.F.2 are paid: SOR ¶ 1.p ($64); SOR ¶ 1.q ($53); SOR ¶ 1.v ($37); and SOR ¶ 1.w ($37). (Tr. 41-44; AE E.)

$37

For Applicant

Medical Debt

Admitted

—

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

Documented

Debt Paid in Full

1.x

The $100 debt owed to a retail store was paid in April 2016. (AE F.)

$100

For Applicant

Unspecified Financial

Admitted

—

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

Documented

Debt Paid in Full

1.y

The $729 gas bill from Applicant’s rental property was paid in April 2016. (AE M.)

$729

For Applicant

Utility or Phone Debt

Admitted

—

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

Documented

Debt Paid in Full

1.z

The $3,033 debt owed for a car loan was settled and paid in February 2015. (Tr. 46-47; AE H.)

$3,033

For Applicant

Auto Loan Debt

Admitted

—

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

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

FOOTNOTES