ISCR Case 15-05243.h2

Case Headnote

ISCR Case No. 15-05243.h2

deniedAug 4, 2017· Hon. Jennifer I. Goldstein· hearing

Summary

A 47-year-old government contractor and Army veteran was denied a security clearance under Guideline F, Financial Considerations. The denial stemmed from unresolved financial delinquencies exceeding $16,000, coupled with a history of bankruptcy. Specific allegations included eight separate debts, ranging from $12 to approximately $8,097, across various collection and charged-off accounts.

Disqualifying conditions under Guideline F were raised, including a history of not meeting financial obligations, an inability or unwillingness to satisfy debts, and a pattern of financial irresponsibility. While mitigating conditions were considered, the applicant ultimately failed to demonstrate responsible financial management.

The denial was based on over $11,000 in unresolved debts and a lack of documentation proving efforts to manage these obligations. The applicant's financial history, including a Chapter 13 bankruptcy discharged in 2007, contributed to concerns about his judgment and reliability, leading to the denial of his security clearance.

Why the Applicant Was Denied

The applicant has unresolved debts totaling over $11,000, raising concerns about his financial reliability.
He failed to provide documentation showing responsible management of his financial obligations.
The applicant's history of financial delinquencies includes a Chapter 13 bankruptcy discharged in 2007, indicating ongoing financial issues.

Conditions Referenced

Disqualifying

AG ¶ 19(a)raisedInability to Satisfy Debts
AG ¶ 19(b)raisedUnwillingness to Satisfy Debts Regardless of the Ability to Do So
AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations

Mitigating

AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was Infrequent, or Unlikely to RecurThe applicant's financial problems are ongoing and unresolved.
AG ¶ 20(b)rejectedConditions That Resulted in Financial Problems Were Largely Beyond the Person's ControlWhile some circumstances were beyond his control, he did not act responsibly regarding his debts.
AG ¶ 20(c)rejectedReceived Financial CounselingThe applicant provided no evidence of recent financial counseling.
AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsThe applicant failed to demonstrate timely actions to address his remaining debts.
AG ¶ 20(e)rejectedReasonable Basis to Dispute Legitimacy of Past-due DebtThe applicant did not provide evidence of any formal dispute regarding his debts.

Key Rule Quoted

“Failure to live within one's means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual's reliability, trustworthiness, and ability to protect classified or sensitive information.”

Procedural Posture

SOR issuedMar 23, 2016
Answer filedJun 16, 2016
Hearing heldDec 20, 2016
Decision dateAug 4, 2017Decision on remand.

Cite For

Denial of Security Clearance Due to Unresolved Financial Obligations
Impact of Bankruptcy on Security Clearance Eligibility
Importance of Demonstrating Responsible Financial Management in Security Clearance 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	Applicant was indebted to a medical creditor on a collection account in the amount of $12, as alleged in SOR ¶ 1.a. $12	For Applicant	Medical Debt	Admitted	—	—	—
1.b	Applicant was indebted on a charged-off account in the approximate amount of $8,097, as alleged in SOR ¶ 1.b. $8,097	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.c	Applicant was indebted on a charged-off account in the approximate amount of $1,115, as alleged in SOR ¶ 1.c. $1,115	For Applicant	Credit Card Debt	Denied	—	—	—
1.d	Applicant was indebted on a collection account in the approximate amount of $349, as alleged in SOR ¶ 1.d. $349	For Applicant	Unspecified Financial	Denied	—	—	—
1.e	Applicant was indebted on a collection account in the approximate amount of $1,523, as alleged in SOR ¶ 1.e. $1,523	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	—
1.f	Applicant was indebted on a charged-off account in the approximate amount of $3,177, as alleged in SOR ¶ 1.f. $3,177	For Applicant	Unspecified Financial	Denied	—	—	—
1.g	Applicant was alleged to be indebted on a collection account in the approximate amount of $1,632, as alleged in SOR ¶ 1.g. $1,632	Against Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.h	Applicant was alleged to be indebted on a collection account in the approximate amount of $288, as alleged in SOR ¶ 1.h. $288	For Applicant	Unspecified Financial	Denied	—	—	—
1.i	specific text not stated in this decision	Against Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant was indebted to a medical creditor on a collection account in the amount of $12, as alleged in SOR ¶ 1.a.

$12

For Applicant

Medical Debt

Admitted

—

1.b

Applicant was indebted on a charged-off account in the approximate amount of $8,097, as alleged in SOR ¶ 1.b.

$8,097

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.c

Applicant was indebted on a charged-off account in the approximate amount of $1,115, as alleged in SOR ¶ 1.c.

$1,115

For Applicant

Credit Card Debt

Denied

—

1.d

Applicant was indebted on a collection account in the approximate amount of $349, as alleged in SOR ¶ 1.d.

$349

For Applicant

Unspecified Financial

Denied

—

1.e

Applicant was indebted on a collection account in the approximate amount of $1,523, as alleged in SOR ¶ 1.e.

$1,523

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

—

1.f

Applicant was indebted on a charged-off account in the approximate amount of $3,177, as alleged in SOR ¶ 1.f.

$3,177

For Applicant

Unspecified Financial

Denied

—

1.g

Applicant was alleged to be indebted on a collection account in the approximate amount of $1,632, as alleged in SOR ¶ 1.g.

$1,632

Against Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.h

Applicant was alleged to be indebted on a collection account in the approximate amount of $288, as alleged in SOR ¶ 1.h.

$288

For Applicant

Unspecified Financial

Denied

—

1.i

specific text not stated in this decision

Against Applicant

Unspecified Financial

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

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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