ISCR Case 15-07634.h1

Case Headnote

ISCR Case No. 15-07634.h1

grantedFeb 3, 2017· Hon. Darlene Lokey Anderson· hearing

Summary

A 45-year-old married woman with two children was granted a security clearance under Guideline F (Financial Considerations) despite a history of significant debt. The Statement of Reasons detailed numerous delinquent accounts, including two consolidated student loans totaling $26,188, which she brought current with monthly payments of $102.75. Other debts included a $501 account removed from her credit reports after being disputed, a $316 electric bill paid in June 2016, and a $1,802 credit card debt settled for $339.06.

Additional financial issues included a $510 credit card debt with ongoing $5 monthly payments, a $1,042 credit card debt with $25.24 monthly payments, and two $1,338 credit card debts with $27.31 monthly payments. A $2,660 credit card debt had its monthly payments reduced from $40 to $20. The applicant also paid off a $315 collection account in October 2015, a $189 gas bill in full, and resolved $403.97 in delinquent federal taxes from 2010, having originally owed $12,000.

The judge found that the applicant's financial difficulties stemmed from circumstances beyond her control, such as medical issues and job loss. She demonstrated substantial efforts to resolve her obligations through counseling and payment plans, reflecting responsibility and good faith. These mitigating factors led to the decision to grant the security clearance.

Why the Applicant Prevailed

The applicant demonstrated a good-faith effort to repay overdue creditors and resolve debts.
The applicant's financial difficulties were largely due to circumstances beyond her control, including medical emergencies and loss of employment.
The applicant provided substantial evidence of financial rehabilitation and responsible management of her debts.

Conditions Referenced

Disqualifying

19.(a)raisedInability or Unwillingness to Satisfy Debts
19.(c)raisedA History of Not Meeting Financial Obligations

Mitigating

20.(b)appliedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
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
20.(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts

Key Rule Quoted

“The adjudicative process is an examination of a sufficient period of a person’s life to make an affirmative determination that the person is an acceptable security risk.”

Procedural Posture

SOR issuedMay 22, 2016
Answer filedJun 22, 2016
Hearing heldOct 12, 2016Record remained open until October 26, 2016.
Decision dateFeb 3, 2017

Cite For

Mitigating Conditions for Financial Considerations Under Guideline F
Evidence of Financial Rehabilitation and Responsible Debt Management
Impact of Personal Circumstances on Financial Obligations

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	Two delinquent student loan debts were placed for collection in the approximate amount of $13,685 and $12,503 respectively. Applicant has consolidated the two loans, now owes a total of $26,188, and has brought the debt current. She is now making a monthly payment of $102.75 until the debt is resolved. $26,188	For Applicant	Student Loan Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.b	Two delinquent student loan debts were placed for collection in the approximate amount of $13,685 and $12,503 respectively. Applicant has consolidated the two loans, now owes a total of $26,188, and has brought the debt current. She is now making a monthly payment of $102.75 until the debt is resolved. $26,188	For Applicant	Student Loan Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.c	A delinquent account was placed for collection in the approximate amount of $501. Applicant has disputed the debt with the three credit reporting agencies, and they determined that the debt cannot be validated. The debt has been removed from her credit reports. $501	For Applicant	Unspecified Financial	Denied	—	—	—
1.d	A delinquent debt was charged off in the approximate amount of $316. This old electric bill was paid off on June 16, 2016. $316	For Applicant	Utility or Phone Debt	Admitted	—	(b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.e	A delinquent credit card debt was charged off in the approximate amount of $1,802. Applicant is making $20 monthly payments and has reduced the debt to about $600. The account was recently settled for $339.06. $339	For Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Settlement
1.f	A delinquent credit card debt was charged off in the approximate amount of $510. Applicant has been making payments of $5 per month since last March, agreed to by the creditor, until she is in better financial standing. $510	For Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Documented Payment Plan with Creditor
1.g	A delinquent credit card debt was charged off in the approximate amount of $1,042. Applicant is making monthly payments of $25.24 and plans to pay off the debt with her pension money next month. $1,042	For Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Documented Payment Plan with Creditor
1.h	A delinquent credit card debt was placed for collection in the approximate amount of $2,660. Applicant was making payments of $40 per month, but this was reduced to $20 monthly agreed to by the creditor, until her financial standing improves. $2,660	For Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Documented Payment Plan with Creditor
1.i	A delinquent credit card debt was placed for collection in the approximate amount of $1,338. Applicant is making payments of $27.31 monthly, agreed upon by the creditor, until she resolves the debt. $1,338	For Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Documented Payment Plan with Creditor
1.j	A delinquent credit card debt was placed for collection in the approximate amount of $1,338. Applicant is making payments of $27.31 monthly, agreed upon by the creditor, until she resolves the debt. $1,338	For Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Documented Payment Plan with Creditor
1.k	A delinquent credit card debt was charged off in the approximate amount of $1,802. Applicant is making $20 monthly payments and has reduced the debt to about $600. The account was recently settled for $339.06. $339	For Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Settlement
1.l	A delinquent account that was placed for collection in the approximate amount of $315. Applicant paid off the account in October 2015. $315	For Applicant	Unspecified Financial	Admitted	—	(b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.m	A delinquent gas bill was placed for collection in the approximate amount of $189. Applicant has paid the debt in full. $189	For Applicant	Utility or Phone Debt	Admitted	—	(b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.n	Delinquent Federal taxes owed in the approximate amount of $403.97 for tax year 2010 was paid on March 7, 2016. Applicant originally owed $12,000 and has now resolved all of her delinquent tax debt. $403	For Applicant	Tax Unpaid	Admitted	—	(b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved (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

Two delinquent student loan debts were placed for collection in the approximate amount of $13,685 and $12,503 respectively. Applicant has consolidated the two loans, now owes a total of $26,188, and has brought the debt current. She is now making a monthly payment of $102.75 until the debt is resolved.

$26,188

For Applicant

Student Loan Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(b) conditions largely beyond the person’s control; acted responsibly

(c) received/receiving counseling; problem being resolved

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

Documented

Debt Paid in Full

1.b

$26,188

For Applicant

Student Loan Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(b) conditions largely beyond the person’s control; acted responsibly

(c) received/receiving counseling; problem being resolved

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

Documented

Debt Paid in Full

1.c

A delinquent account was placed for collection in the approximate amount of $501. Applicant has disputed the debt with the three credit reporting agencies, and they determined that the debt cannot be validated. The debt has been removed from her credit reports.

$501

For Applicant

Unspecified Financial

Denied

—

1.d

A delinquent debt was charged off in the approximate amount of $316. This old electric bill was paid off on June 16, 2016.

$316

For Applicant

Utility or Phone Debt

Admitted

—

(b) conditions largely beyond the person’s control; acted responsibly

(c) received/receiving counseling; problem being resolved

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

Documented

Debt Paid in Full

1.e

A delinquent credit card debt was charged off in the approximate amount of $1,802. Applicant is making $20 monthly payments and has reduced the debt to about $600. The account was recently settled for $339.06.

$339

For Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(b) conditions largely beyond the person’s control; acted responsibly

(c) received/receiving counseling; problem being resolved

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

Documented

Debt Settlement

1.f

A delinquent credit card debt was charged off in the approximate amount of $510. Applicant has been making payments of $5 per month since last March, agreed to by the creditor, until she is in better financial standing.

$510

For Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(b) conditions largely beyond the person’s control; acted responsibly

(c) received/receiving counseling; problem being resolved

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

Documented

Payment Plan with Creditor

1.g

A delinquent credit card debt was charged off in the approximate amount of $1,042. Applicant is making monthly payments of $25.24 and plans to pay off the debt with her pension money next month.

$1,042

For Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(b) conditions largely beyond the person’s control; acted responsibly

(c) received/receiving counseling; problem being resolved

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

Documented

Payment Plan with Creditor

1.h

A delinquent credit card debt was placed for collection in the approximate amount of $2,660. Applicant was making payments of $40 per month, but this was reduced to $20 monthly agreed to by the creditor, until her financial standing improves.

$2,660

For Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(b) conditions largely beyond the person’s control; acted responsibly

(c) received/receiving counseling; problem being resolved

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

Documented

Payment Plan with Creditor

1.i

A delinquent credit card debt was placed for collection in the approximate amount of $1,338. Applicant is making payments of $27.31 monthly, agreed upon by the creditor, until she resolves the debt.

$1,338

For Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(b) conditions largely beyond the person’s control; acted responsibly

(c) received/receiving counseling; problem being resolved

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

Documented

Payment Plan with Creditor

1.j

A delinquent credit card debt was placed for collection in the approximate amount of $1,338. Applicant is making payments of $27.31 monthly, agreed upon by the creditor, until she resolves the debt.

$1,338

For Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(b) conditions largely beyond the person’s control; acted responsibly

(c) received/receiving counseling; problem being resolved

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

Documented

Payment Plan with Creditor

1.k

$339

For Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(b) conditions largely beyond the person’s control; acted responsibly

(c) received/receiving counseling; problem being resolved

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

Documented

Debt Settlement

1.l

A delinquent account that was placed for collection in the approximate amount of $315. Applicant paid off the account in October 2015.

$315

For Applicant

Unspecified Financial

Admitted

—

(b) conditions largely beyond the person’s control; acted responsibly

(c) received/receiving counseling; problem being resolved

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

Documented

Debt Paid in Full

1.m

A delinquent gas bill was placed for collection in the approximate amount of $189. Applicant has paid the debt in full.

$189

For Applicant

Utility or Phone Debt

Admitted

—

(b) conditions largely beyond the person’s control; acted responsibly

(c) received/receiving counseling; problem being resolved

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

Documented

Debt Paid in Full

1.n

Delinquent Federal taxes owed in the approximate amount of $403.97 for tax year 2010 was paid on March 7, 2016. Applicant originally owed $12,000 and has now resolved all of her delinquent tax debt.

$403

For Applicant

Tax Unpaid

Admitted

—

(b) conditions largely beyond the person’s control; acted responsibly

(c) received/receiving counseling; problem being resolved

(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

CONCLUSION

FORMAL FINDINGS

DECISION