ISCR Case 08-05407.h1

Case Headnote

ISCR Case No. 08-05407.h1

grantedJul 6, 2009· Hon. Wilford H. Ross· hearing

Summary

A 26-year-old married defense contractor with three children was granted a security clearance despite concerns under Guideline F (Financial Considerations). The applicant admitted to being financially overextended but demonstrated a commitment to resolving his debts.

Specifically, the applicant owed approximately $9,643.43 for one credit card debt, which he began resolving in February 2009. He reached a settlement agreement for $4,862.79 and paid this debt in full on May 5, 2009. He also owed approximately $5,707.00 for another credit card bill. While an initial payment agreement for $2,700.00 was rescinded, the applicant continued discussions with the law firm representing the creditor to settle this debt. A third credit card debt of approximately $3,942.00 presented confusion regarding the successor in interest, but the applicant expressed readiness to resolve it and continued efforts to settle with the relevant law firm.

The decision to grant the clearance was based on the applicant's demonstrated commitment to resolving his debts, including the full payment of one obligation. His financial situation improved significantly after obtaining a new job, and his family circumstances, which contributed to the difficulties, were addressed responsibly. The judge found that the applicant's financial issues were largely under control and that he had made good faith efforts to repay his creditors.

Why the Applicant Prevailed

The applicant demonstrated a commitment to resolving his financial debts, including paying one debt in full.
The applicant's financial situation improved significantly after obtaining a new job.
The applicant's family circumstances contributed to his financial difficulties, which he has addressed responsibly.

Conditions Referenced

Disqualifying

AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations

Mitigating

AG ¶ 20(c)appliedClear Indications That the Problem Is Being Resolved or Is Under Control
AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts

Key Rule Quoted

“Failure or inability 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 information.”

Procedural Posture

SOR issuedJan 20, 2009
Answer filedFeb 11, 2009
Hearing heldApr 28, 2009
Decision dateJul 6, 2009

Cite For

Mitigation of Financial Issues Under Guideline F
Good Faith Efforts to Resolve Debts
Consideration of Family Circumstances in Financial Evaluations

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 Applicant admits that he owed approximately $9,643.43 for a credit card debt. The original indebtedness was $5,746.00, with interest making up the total amount. The Applicant began trying to resolve this debt in February 2009. He made a payment arrangement with the successor in interest, and agreed to pay $4,862.79 to resolve the debt. He paid this debt in full on May 5, 2009. $9,643	For Applicant	Credit Card Debt	Admitted	—	(c) received/receiving counseling; problem being resolved	Credited Debt Paid in Full
1.b	The Applicant admits that he owes approximately $5,707.00 for a credit card bill. The Applicant testified that he came to a payment agreement in February 2009 with the law firm representing the creditor. The agreement was for the Applicant to pay $2,700.00. The Applicant testified, 'I was contacted by [the law firm’s] office a few days later basically saying the offer was no longer valid.' The Applicant has had further discussions with the law firm, but he has not been able to reach an acceptable payment agreement with them. The Applicant will continue to work with this law firm until this debt is settled. $5,707	For Applicant	Credit Card Debt	Admitted	—	—	Claimed Other
1.c	The Applicant admits that he owes approximately $3,942.00 for a credit card debt. There appears to be confusion about who the successor in interest is for this debt. In February 2009, the Applicant was told by a collection agency that the same law firm which is handling subparagraph 1.b. is also the collection agency for this debt. The law firm denies any knowledge of the debt. Once again, the Applicant indicated that he is ready, willing and able to resolve this debt. The Applicant will continue to work with this law firm until this debt is settled. $3,942	For Applicant	Credit Card Debt	Admitted	—	—	Claimed Other

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

The Applicant admits that he owed approximately $9,643.43 for a credit card debt. The original indebtedness was $5,746.00, with interest making up the total amount. The Applicant began trying to resolve this debt in February 2009. He made a payment arrangement with the successor in interest, and agreed to pay $4,862.79 to resolve the debt. He paid this debt in full on May 5, 2009.

$9,643

For Applicant

Credit Card Debt

Admitted

—

(c) received/receiving counseling; problem being resolved

Credited

Debt Paid in Full

1.b

The Applicant admits that he owes approximately $5,707.00 for a credit card bill. The Applicant testified that he came to a payment agreement in February 2009 with the law firm representing the creditor. The agreement was for the Applicant to pay $2,700.00. The Applicant testified, 'I was contacted by [the law firm’s] office a few days later basically saying the offer was no longer valid.' The Applicant has had further discussions with the law firm, but he has not been able to reach an acceptable payment agreement with them. The Applicant will continue to work with this law firm until this debt is settled.

$5,707

For Applicant

Credit Card Debt

Admitted

—

Claimed

Other

1.c

The Applicant admits that he owes approximately $3,942.00 for a credit card debt. There appears to be confusion about who the successor in interest is for this debt. In February 2009, the Applicant was told by a collection agency that the same law firm which is handling subparagraph 1.b. is also the collection agency for this debt. The law firm denies any knowledge of the debt. Once again, the Applicant indicated that he is ready, willing and able to resolve this debt. The Applicant will continue to work with this law firm until this debt is settled.

$3,942

For Applicant

Credit Card Debt

Admitted

—

Claimed

Other

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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