ISCR Case 07-16554.h1

Case Headnote

ISCR Case No. 07-16554.h1

grantedOct 15, 2008· Hon. Edward W. Loughran· hearing

Summary

A 42-year-old defense contractor was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The Statement of Reasons (SOR) detailed numerous financial allegations, including a February 2006 judgment for $2,033 to an apartment landlord and a separate $3,841 debt to a collection company for the same landlord. Additional allegations included various medical debts ranging from $10 to $178, a $141 debt to a cable provider's collection company, and a $139 debt to an insurance company's collection company. The applicant also acknowledged plans to pay two debts of $198 and $58 by May 9, 2008, and denied owing a $72 medical collection debt and a $162 utility debt.

The Administrative Judge found that the applicant's financial difficulties were largely attributable to an abusive relationship. The applicant successfully mitigated these concerns by demonstrating a commitment to resolving her financial issues. She paid off several significant delinquent debts, including the landlord judgment and various medical debts, and presented a clear plan for addressing her remaining financial obligations.

Based on these actions and circumstances, the Administrative Judge applied mitigating conditions, including that the financial problems were not recent, were largely beyond the applicant's control, and that the applicant had initiated a good-faith effort to resolve the debts. Consequently, eligibility for a security clearance was granted.

Why the Applicant Prevailed

The applicant paid off significant delinquent debts, including a judgment to a landlord and various medical debts.
The applicant's financial issues were largely linked to an abusive relationship, which the judge found to be a mitigating factor.
The applicant demonstrated a clear plan to resolve her financial problems and took significant actions to implement that plan.

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(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

Key Rule Quoted

“An applicant must demonstrate that she has established a plan to resolve [her] financial problems and taken significant actions to implement that plan.”
— ADP Case No. 06-18900 at 4 (App. Bd. Jun. 6, 2008)

Procedural Posture

SOR issuedApr 15, 2008
Answer filedMay 7, 2008Applicant elected to have the case decided on the written record.
Hearing held—No hearing; case decided on written record.
Decision dateOct 15, 2008

Cite For

Mitigation of Financial Concerns Under Guideline F Due to Personal Circumstances
Importance of Demonstrating a Plan to Resolve Financial Issues
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	SOR ¶1.a reflects a judgment awarded to the apartment landlord in February 2006, for $2,033. $2,033	For Applicant	Judgment Against Applicant	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.b	SOR ¶1.b reflects a delinquent debt of $3,841 owed to a collection company, collecting on behalf of the same apartment landlord. $3,841	For Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.c	SOR ¶ 1.c alleges a medical debt of $20. $20	For Applicant	Medical Debt	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.d	Applicant wrote on the credit report of April 18, 2008, that she would pay the debts of $198 and $58, as alleged in SOR ¶¶ 1.e and 1.f, on May 9, 2008. $648	For Applicant	Medical Debt	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.e–1.f	2 sub-charges — specific text not stated in this decision (for the applicant).	For Applicant			—	—	—
1.g	SOR ¶ 1.g alleges a medical debt of $20. $20	For Applicant	Medical Debt	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.h	SOR ¶ 1.h alleges a medical debt of $178. $178	For Applicant	Medical Debt	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.i	The credit report of May 30, 2007, lists a debt of $141 to a collection company, collecting on behalf of a cable provider, as alleged in SOR ¶ 1.i. $141	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.j	Applicant denied owing the debt of $72 to a collection company, collecting on behalf of a medical provider, as alleged in SOR ¶ 1.j. $72	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.k	SOR ¶ 1.k alleges debts of $20 to a collection company, collecting on behalf of a medical provider. $20	For Applicant	Medical Debt	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.l	SOR ¶ 1.l alleges debts of $25 to a collection company, collecting on behalf of a medical provider. $25	For Applicant	Medical Debt	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.m	SOR ¶ 1.m alleges debts of $10 to a collection company, collecting on behalf of a medical provider. $10	For Applicant	Medical Debt	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.n	SOR ¶ 1.n alleges debts of $25 to a collection company, collecting on behalf of a medical provider. $25	For Applicant	Medical Debt	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.o	Applicant wrote on the credit report of April 18, 2008, that she would pay the $139 debt to a collection company, collecting for an insurance company, as alleged in SOR ¶ 1.o. $139	For Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.p	Applicant denied owing the debt of $162 to a utility company, as alleged in SOR ¶ 1.p. $162	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.q	SOR ¶ 1.q alleges a debt of $50 to a collection company, collecting on behalf of a medical provider. $50	For Applicant	Medical Debt	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	Documented Debt Paid in Full

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

SOR ¶1.a reflects a judgment awarded to the apartment landlord in February 2006, for $2,033.

$2,033

For Applicant

Judgment Against Applicant

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

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

Documented

Debt Paid in Full

1.b

SOR ¶1.b reflects a delinquent debt of $3,841 owed to a collection company, collecting on behalf of the same apartment landlord.

$3,841

For Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

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

Documented

Debt Paid in Full

1.c

SOR ¶ 1.c alleges a medical debt of $20.

$20

For Applicant

Medical Debt

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.d

Applicant wrote on the credit report of April 18, 2008, that she would pay the debts of $198 and $58, as alleged in SOR ¶¶ 1.e and 1.f, on May 9, 2008.

$648

For Applicant

Medical Debt

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.e–1.f

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

For Applicant

—

1.g

SOR ¶ 1.g alleges a medical debt of $20.

$20

For Applicant

Medical Debt

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.h

SOR ¶ 1.h alleges a medical debt of $178.

$178

For Applicant

Medical Debt

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.i

The credit report of May 30, 2007, lists a debt of $141 to a collection company, collecting on behalf of a cable provider, as alleged in SOR ¶ 1.i.

$141

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.j

Applicant denied owing the debt of $72 to a collection company, collecting on behalf of a medical provider, as alleged in SOR ¶ 1.j.

$72

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.k

SOR ¶ 1.k alleges debts of $20 to a collection company, collecting on behalf of a medical provider.

$20

For Applicant

Medical Debt

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.l

SOR ¶ 1.l alleges debts of $25 to a collection company, collecting on behalf of a medical provider.

$25

For Applicant

Medical Debt

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.m

SOR ¶ 1.m alleges debts of $10 to a collection company, collecting on behalf of a medical provider.

$10

For Applicant

Medical Debt

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.n

SOR ¶ 1.n alleges debts of $25 to a collection company, collecting on behalf of a medical provider.

$25

For Applicant

Medical Debt

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.o

Applicant wrote on the credit report of April 18, 2008, that she would pay the $139 debt to a collection company, collecting for an insurance company, as alleged in SOR ¶ 1.o.

$139

For Applicant

Unspecified Financial

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.p

Applicant denied owing the debt of $162 to a utility company, as alleged in SOR ¶ 1.p.

$162

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.q

SOR ¶ 1.q alleges a debt of $50 to a collection company, collecting on behalf of a medical provider.

$50

For Applicant

Medical Debt

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

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