ISCR Case 08-05350.h1

Case Headnote

ISCR Case No. 08-05350.h1

grantedJun 17, 2009· Hon. Shari Dam· hearing

Summary

A 46-year-old veteran with over 20 years of honorable U.S. Army service was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The Statement of Reasons (SOR) detailed several financial issues, including a $110 medical bill for a child, which the applicant paid in March 2009 after believing Tricare had covered it.

Further concerns involved two debts totaling $972 and $10,597 related to a vehicle purchase for his wife, with a balance of $14,148 as of May 2009. Payments on these debts ceased in November 2006, and the debt was charged off in late 2007. The applicant had attempted to negotiate a repayment plan and began making monthly payments independently. Additionally, an automobile repossession debt of $23,000 was resolved with a $2,000 payment in May 2009, a debt the applicant was unaware of until contacted by an investigator.

The decision to grant the clearance was based on the applicant's proactive efforts to resolve his financial problems, including engaging in credit counseling and making timely payments. He presented a credible plan for managing and repaying his debts. His extensive military service and demonstrated responsible behavior were also considered, contributing to a favorable assessment of his reliability and trustworthiness.

Why the Applicant Prevailed

The applicant demonstrated a proactive approach to resolving financial issues through credit counseling and timely payments on debts.
He provided credible evidence of a reasonable plan to manage and repay his debts.
The applicant's military service and responsible behavior contributed to a favorable assessment of his reliability and trustworthiness.

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 Largely Beyond the Person's ControlSome financial problems arose from the applicant's wife's loss of income and his own salary reduction.
AG ¶ 20(c)appliedReceived Counseling for the ProblemThe applicant sought credit counseling after recognizing his financial issues.
AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue CreditorsThe applicant made payments on three of the four debts and is actively working on the remaining debt.
AG ¶ 20(e)appliedReasonable Basis to Dispute Legitimacy of Past-due DebtThe credit counseling firm has disputed several debts on behalf of the applicant.

Key Rule Quoted

“An applicant is not required to show that she 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

Procedural Posture

SOR issuedFeb 13, 2009
Answer filedMar 13, 2009
Hearing heldMay 12, 2009
Decision dateJun 17, 2009

Cite For

Proactive Measures in Addressing Financial Issues Under Guideline F
Importance of Credit Counseling in Mitigating Financial Concerns
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 is a medical bill for $110 that was incurred for one of his children. It was originally for $95.00. Applicant paid it on March 9, 2009. He thought Tricare paid it. $110	For Applicant	Medical Debt	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts (e) reasonable, documented basis to dispute the debt	—
1.b	SOR ¶ 1.b and ¶ 1.c for $972 and $10,597 are both associated with the purchase of a vehicle for Applicant’s wife. The balance as of May 29, 2009, is $14,148. He has paid $600 over the past couple months and intends to continue making monthly payments. He stopped making payments in November 2006. He has attempted to work out a repayment plan with the creditor, but has been unable to do so. He then decided to make monthly payments regardless. This debt was charged off sometime in late 2007.	For Applicant	Auto Loan Debt	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts (e) reasonable, documented basis to dispute the debt	—
1.c	specific text not stated in this decision	For Applicant	Unspecified Financial	Unknown	—	—	—
1.d	SOR ¶ 1.d for $23,000 is an automobile repossession. Applicant resolved the debt with a $2,000 payment on May 26, 2009. He was unaware of this debt until he was contacted by a government investigator regarding his e-QiP. He knew the car had been sold. $23,000	For Applicant	Auto Loan Debt	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts (e) reasonable, documented basis to dispute the debt	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

SOR ¶ 1.a is a medical bill for $110 that was incurred for one of his children. It was originally for $95.00. Applicant paid it on March 9, 2009. He thought Tricare paid it.

$110

For Applicant

Medical Debt

Admitted

—

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

(e) reasonable, documented basis to dispute the debt

—

1.b

SOR ¶ 1.b and ¶ 1.c for $972 and $10,597 are both associated with the purchase of a vehicle for Applicant’s wife. The balance as of May 29, 2009, is $14,148. He has paid $600 over the past couple months and intends to continue making monthly payments. He stopped making payments in November 2006. He has attempted to work out a repayment plan with the creditor, but has been unable to do so. He then decided to make monthly payments regardless. This debt was charged off sometime in late 2007.

For Applicant

Auto Loan Debt

Admitted

—

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

(e) reasonable, documented basis to dispute the debt

—

1.c

specific text not stated in this decision

For Applicant

Unspecified Financial

Unknown

—

1.d

SOR ¶ 1.d for $23,000 is an automobile repossession. Applicant resolved the debt with a $2,000 payment on May 26, 2009. He was unaware of this debt until he was contacted by a government investigator regarding his e-QiP. He knew the car had been sold.

$23,000

For Applicant

Auto Loan Debt

Admitted

—

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

(e) reasonable, documented basis to dispute the debt

—

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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