ISCR Case 15-04494.h1

Case Headnote

ISCR Case No. 15-04494.h1

grantedOct 25, 2016· Hon. Mark W. Harvey· hearing

Summary

A 38-year-old graphics designer was granted a security clearance despite 22 allegations of delinquent debts under Guideline F (Financial Considerations). The Statement of Reasons detailed various outstanding obligations, including medical judgments, homeowner’s association fees, charged-off bank debts, and multiple student loan and mortgage delinquencies. For example, a 2014 medical judgment for $222 was paid in 2015, and a 2012 homeowner’s association judgment for $3,608 was addressed with a payment plan initiated in 2016. Several medical debts were settled and paid, while others were placed on payment plans.

The applicant also faced significant mortgage delinquencies totaling $31,664, $23,585, and $15,771, which were attributed to an inability to sell a condominium due to declining real estate values. Multiple student loan debts were combined into a single $84 monthly payment. Other debts included a charged-off bank account for $1,002, a public storage collection account settled for $265, and a telecommunications collection account settled for $281. One medical debt for $541 could not be located.

The judge found that the applicant’s financial difficulties were largely due to circumstances beyond his control, such as a spouse's job loss and medical expenses. The applicant demonstrated significant progress by obtaining a second job, utilizing a debt consolidation plan, and establishing payment plans for many debts. His current income and budgeting practices indicated a responsible approach to financial management, leading to the security clearance being GRANTED.

Why the Applicant Prevailed

The applicant made significant progress in addressing his delinquent debts through payments and a debt consolidation plan.
The financial difficulties were largely due to circumstances beyond the applicant's control, such as his spouse's job loss and medical expenses.
The applicant's current income and budgeting practices indicate a responsible approach to financial management.

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(a)appliedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur

Key Rule Quoted

“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the adjudicative guidelines.”

Procedural Posture

SOR issuedDec 7, 2015
Answer filedJan 2, 2016
Hearing heldSep 1, 2016
Decision dateOct 25, 2016

Cite For

Mitigation of Financial Considerations Under Guideline F
Impact of Personal Circumstances on Financial Obligations
Good Faith Efforts to Resolve Debts as a Mitigating Factor

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	SOR ¶ 1.a alleges a medical judgment entered in 2014 for $222. On December 28, 2015, Applicant paid $320 and resolved this debt. $222	For Applicant	Judgment Against Applicant	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.b	SOR ¶ 1.b alleges a 2012 homeowner’s association judgment for $3,608. Applicant negotiated a payment plan, and he made the first $67 payment on September 1, 2016. $3,608	For Applicant	Judgment Against Applicant	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Payment Plan with Creditor
1.c	SOR ¶ 1.c alleges a delinquent medical debt for $173. On December 31, 2015, he settled and paid the debt for $173. $173	For Applicant	Medical Debt	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.d	SOR ¶ 1.d alleges a delinquent medical debt for $198. On August 2, 2016, he settled and paid the $198 debt for $160. $198	For Applicant	Medical Debt	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.e	SOR ¶ 1.e alleges a delinquent medical debt for $540. On August 23, 2016, Applicant established a $15 monthly payment plan to address the debt for $540. $540	For Applicant	Medical Debt	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Payment Plan with Creditor
1.f	SOR ¶ 1.f alleges a delinquent medical debt for $112. On July 29, 2016, he settled and paid the $112 debt for $106. $112	For Applicant	Medical Debt	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.g	SOR ¶ 1.g alleges a delinquent medical debt for $271. On December 31, 2015, he settled and paid the $271 debt for $281. $271	For Applicant	Medical Debt	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.h	SOR ¶ 1.h alleges a charged-off bank debt for $869. On August 19, 2016, Applicant established a $36 monthly payment plan to address the debt for $869. $869	For Applicant	Unspecified Financial	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Payment Plan with Creditor
1.i	SOR ¶ 1.i alleges a collection-bank debt for $2,684. On February 27, 2015, Applicant established a $198 monthly payment plan to address the debt for $2,684. $2,684	For Applicant	Unspecified Financial	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Payment Plan with Creditor
1.j	SOR ¶ 1.j alleges a mortgage loan account delinquent in the amount of $31,664. Applicant was unable to sell the condominium because the decline in real estate prices caused the property to be worth less than the amounts owed on the two mortgages. $31,664	For Applicant	Mortgage or Home Loan Debt	Unknown	—	—	—
1.k	SOR ¶ 1.k alleges a delinquent student loan debt for $157. Applicant’s student loans are now combined, and his monthly payment is $84. $157	For Applicant	Student Loan Debt	Unknown	—	—	—
1.l	SOR ¶ 1.l alleges a delinquent student loan debt for $34. Applicant’s student loans are now combined, and his monthly payment is $84. $34	For Applicant	Student Loan Debt	Unknown	—	—	—
1.m	SOR ¶ 1.m alleges a delinquent student loan debt for $61. Applicant’s student loans are now combined, and his monthly payment is $84. $61	For Applicant	Student Loan Debt	Unknown	—	—	—
1.n	SOR ¶ 1.n alleges a delinquent student loan debt for $50. Applicant’s student loans are now combined, and his monthly payment is $84. $50	For Applicant	Student Loan Debt	Unknown	—	—	—
1.o	SOR ¶ 1.o alleges a delinquent student loan debt for $50. Applicant’s student loans are now combined, and his monthly payment is $84. $50	For Applicant	Student Loan Debt	Unknown	—	—	—
1.p	SOR ¶ 1.p alleges a delinquent student loan debt for $91. Applicant’s student loans are now combined, and his monthly payment is $84. $91	For Applicant	Student Loan Debt	Unknown	—	—	—
1.q	SOR ¶ 1.q alleges a charged-off bank account for $1,002. In February 2015, he began making $24 monthly payments, and in February 2016, he increased the monthly payment to $39. $1,002	For Applicant	Unspecified Financial	Unknown	—	—	—
1.r	SOR ¶ 1.r alleges a mortgage loan account delinquent in the amount of $23,585 with a balance of $39,421. Applicant was unable to sell the condominium because the decline in real estate prices caused the property to be worth less than the amounts owed on the two mortgages. $23,585	For Applicant	Mortgage or Home Loan Debt	Unknown	—	—	—
1.s	SOR ¶ 1.s alleges a mortgage loan account delinquent in the amount of $15,771 with a balance of $141,821. Applicant was unable to sell the condominium because the decline in real estate prices caused the property to be worth less than the amounts owed on the two mortgages. $15,771	For Applicant	Mortgage or Home Loan Debt	Unknown	—	—	—
1.t	SOR ¶ 1.t alleges a delinquent medical debt for $541. Applicant was unable to locate the creditor for the debt, and it is not listed on his current credit report. $541	For Applicant	Medical Debt	Unknown	—	—	—
1.u	SOR ¶ 1.u alleges a public storage collection account in the amount of $348. On August 8, 2015, he settled and paid the $348 debt for $265. $348	For Applicant	Unspecified Financial	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.v	SOR ¶ 1.v alleges a telecommunications collection account in the amount of $271. On December 31, 2015, he settled and paid the $271 debt for $281. $271	For Applicant	Unspecified Financial	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

SOR ¶ 1.a alleges a medical judgment entered in 2014 for $222. On December 28, 2015, Applicant paid $320 and resolved this debt.

$222

For Applicant

Judgment Against Applicant

Admitted

—

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

Documented

Debt Paid in Full

1.b

SOR ¶ 1.b alleges a 2012 homeowner’s association judgment for $3,608. Applicant negotiated a payment plan, and he made the first $67 payment on September 1, 2016.

$3,608

For Applicant

Judgment Against Applicant

Admitted

—

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

Documented

Payment Plan with Creditor

1.c

SOR ¶ 1.c alleges a delinquent medical debt for $173. On December 31, 2015, he settled and paid the debt for $173.

$173

For Applicant

Medical Debt

Admitted

—

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

Documented

Debt Paid in Full

1.d

SOR ¶ 1.d alleges a delinquent medical debt for $198. On August 2, 2016, he settled and paid the $198 debt for $160.

$198

For Applicant

Medical Debt

Admitted

—

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

Documented

Debt Paid in Full

1.e

SOR ¶ 1.e alleges a delinquent medical debt for $540. On August 23, 2016, Applicant established a $15 monthly payment plan to address the debt for $540.

$540

For Applicant

Medical Debt

Admitted

—

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

Documented

Payment Plan with Creditor

1.f

SOR ¶ 1.f alleges a delinquent medical debt for $112. On July 29, 2016, he settled and paid the $112 debt for $106.

$112

For Applicant

Medical Debt

Admitted

—

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

Documented

Debt Paid in Full

1.g

SOR ¶ 1.g alleges a delinquent medical debt for $271. On December 31, 2015, he settled and paid the $271 debt for $281.

$271

For Applicant

Medical Debt

Admitted

—

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

Documented

Debt Paid in Full

1.h

SOR ¶ 1.h alleges a charged-off bank debt for $869. On August 19, 2016, Applicant established a $36 monthly payment plan to address the debt for $869.

$869

For Applicant

Unspecified Financial

Admitted

—

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

Documented

Payment Plan with Creditor

1.i

SOR ¶ 1.i alleges a collection-bank debt for $2,684. On February 27, 2015, Applicant established a $198 monthly payment plan to address the debt for $2,684.

$2,684

For Applicant

Unspecified Financial

Admitted

—

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

Documented

Payment Plan with Creditor

1.j

SOR ¶ 1.j alleges a mortgage loan account delinquent in the amount of $31,664. Applicant was unable to sell the condominium because the decline in real estate prices caused the property to be worth less than the amounts owed on the two mortgages.

$31,664

For Applicant

Mortgage or Home Loan Debt

Unknown

—

1.k

SOR ¶ 1.k alleges a delinquent student loan debt for $157. Applicant’s student loans are now combined, and his monthly payment is $84.

$157

For Applicant

Student Loan Debt

Unknown

—

1.l

SOR ¶ 1.l alleges a delinquent student loan debt for $34. Applicant’s student loans are now combined, and his monthly payment is $84.

$34

For Applicant

Student Loan Debt

Unknown

—

1.m

SOR ¶ 1.m alleges a delinquent student loan debt for $61. Applicant’s student loans are now combined, and his monthly payment is $84.

$61

For Applicant

Student Loan Debt

Unknown

—

1.n

SOR ¶ 1.n alleges a delinquent student loan debt for $50. Applicant’s student loans are now combined, and his monthly payment is $84.

$50

For Applicant

Student Loan Debt

Unknown

—

1.o

SOR ¶ 1.o alleges a delinquent student loan debt for $50. Applicant’s student loans are now combined, and his monthly payment is $84.

$50

For Applicant

Student Loan Debt

Unknown

—

1.p

SOR ¶ 1.p alleges a delinquent student loan debt for $91. Applicant’s student loans are now combined, and his monthly payment is $84.

$91

For Applicant

Student Loan Debt

Unknown

—

1.q

SOR ¶ 1.q alleges a charged-off bank account for $1,002. In February 2015, he began making $24 monthly payments, and in February 2016, he increased the monthly payment to $39.

$1,002

For Applicant

Unspecified Financial

Unknown

—

1.r

SOR ¶ 1.r alleges a mortgage loan account delinquent in the amount of $23,585 with a balance of $39,421. Applicant was unable to sell the condominium because the decline in real estate prices caused the property to be worth less than the amounts owed on the two mortgages.

$23,585

For Applicant

Mortgage or Home Loan Debt

Unknown

—

1.s

SOR ¶ 1.s alleges a mortgage loan account delinquent in the amount of $15,771 with a balance of $141,821. Applicant was unable to sell the condominium because the decline in real estate prices caused the property to be worth less than the amounts owed on the two mortgages.

$15,771

For Applicant

Mortgage or Home Loan Debt

Unknown

—

1.t

SOR ¶ 1.t alleges a delinquent medical debt for $541. Applicant was unable to locate the creditor for the debt, and it is not listed on his current credit report.

$541

For Applicant

Medical Debt

Unknown

—

1.u

SOR ¶ 1.u alleges a public storage collection account in the amount of $348. On August 8, 2015, he settled and paid the $348 debt for $265.

$348

For Applicant

Unspecified Financial

Admitted

—

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

Documented

Debt Paid in Full

1.v

SOR ¶ 1.v alleges a telecommunications collection account in the amount of $271. On December 31, 2015, he settled and paid the $271 debt for $281.

$271

For Applicant

Unspecified Financial

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

POLICIES

ANALYSIS

WHOLE PERSON CONCEPT

FORMAL FINDINGS

CONCLUSION

FOOTNOTES