ISCR Case 07-15509.h1

Case Headnote

ISCR Case No. 07-15509.h1

grantedJul 24, 2008· Hon. Shari Dam· hearing

Summary

A 38-year-old contract administrator was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The applicant and her husband experienced unemployment, leading to delinquent debts totaling $15,620. Disqualifying conditions were raised due to these financial issues.

However, the applicant actively worked to resolve her debts. She paid a $213 debt in February 2008, a $473 debt in January 2008, and an $832 debt in April 2008. A $5,467 department store debt, which had a delinquent balance of $2,900, was paid in full on July 1, 2008, after she initiated contact in January and June 2008. For an $8,635 judgment owed to a credit card company, with a balance of $6,900 when the account closed, she sent a letter requesting a repayment plan.

The judge applied mitigating conditions, noting the financial difficulties stemmed largely from unemployment, circumstances beyond her control. The applicant demonstrated a commitment to resolving her financial issues and received strong employer support. Ultimately, her financial problems were deemed largely resolved and unlikely to recur, leading to the granting of her security clearance.

Why the Applicant Prevailed

The applicant demonstrated a commitment to resolving her financial issues by paying off several debts.
She received strong support from her employer, indicating her reliability and trustworthiness.
The financial difficulties were largely due to circumstances beyond her control, such as unemployment.

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(a)rejectedBehavior Happened Long Ago or InfrequentlyThe debt problems were ongoing for almost five years.
AG ¶ 20(b)appliedConditions Largely Beyond the Person's Control
AG ¶ 20(c)rejectedReceived Counseling or Evidence of Problem ResolutionThe applicant did not receive formal credit counseling.
AG ¶ 20(d)appliedGood-faith Effort to Repay Debts

Key Rule Quoted

“An applicant is not required to show that she has completely paid off her indebtedness, only that she has established a reasonable plan to resolve her debts and has taken 'significant actions to implement that plan.'”
— ISCR Case No. 06-12930, ISCR Case No. 04-09684

Procedural Posture

SOR issuedJan 30, 2008
Answer filedFeb 15, 2008
Hearing heldMay 29, 2008
Decision dateJul 24, 2008

Cite For

Mitigating Conditions Under Guideline F Due to Circumstances Beyond Control
Good-faith Efforts to Resolve Financial Obligations
Consideration of Employer Support 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	The $213 debt listed in ¶ 1.a was paid in February 2008. $213	For Applicant	Unspecified Financial	Admitted	—	—	—
1.b	The $5,467 debt listed in ¶ 1.b is unpaid and is owned to a department store. The balance was $2,900 when it became delinquent. She is attempting to establish a resolution with the company. She wrote them in January 2008 and sent another letter in June 2008. On July 1, 2008, Applicant paid that debt in full. $5,467	For Applicant	Unspecified Financial	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.c	The $473 debt listed in ¶ 1.c was paid in January 2008. $473	For Applicant	Unspecified Financial	Admitted	—	—	—
1.d	The $832 debt listed in ¶ 1.d was paid in April 2008. $832	For Applicant	Unspecified Financial	Admitted	—	—	—
1.e	The $8,635 judgment listed in ¶ 1.f is owed to a credit card company and is unpaid. The balance at the time she closed the account was $6,900. (It is a duplicate of the debt listed in ¶ 1.e.) She recently sent a letter to the creditor requesting a repayment plan. $8,635	For Applicant	Unspecified Financial	Admitted	—	—	Claimed Debt Disputed with Creditor
1.f	specific text not stated in this decision	For Applicant	Unspecified Financial	Unknown	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

The $213 debt listed in ¶ 1.a was paid in February 2008.

$213

For Applicant

Unspecified Financial

Admitted

—

1.b

The $5,467 debt listed in ¶ 1.b is unpaid and is owned to a department store. The balance was $2,900 when it became delinquent. She is attempting to establish a resolution with the company. She wrote them in January 2008 and sent another letter in June 2008. On July 1, 2008, Applicant paid that debt in full.

$5,467

For Applicant

Unspecified Financial

Admitted

—

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

Documented

Debt Paid in Full

1.c

The $473 debt listed in ¶ 1.c was paid in January 2008.

$473

For Applicant

Unspecified Financial

Admitted

—

1.d

The $832 debt listed in ¶ 1.d was paid in April 2008.

$832

For Applicant

Unspecified Financial

Admitted

—

1.e

The $8,635 judgment listed in ¶ 1.f is owed to a credit card company and is unpaid. The balance at the time she closed the account was $6,900. (It is a duplicate of the debt listed in ¶ 1.e.) She recently sent a letter to the creditor requesting a repayment plan.

$8,635

For Applicant

Unspecified Financial

Admitted

—

Claimed

Debt Disputed with Creditor

1.f

specific text not stated in this decision

For Applicant

Unspecified Financial

Unknown

—

Loading case…

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

FORMAL FINDINGS

CONCLUSION