ISCR Case 08-09576.h1

Case Headnote

ISCR Case No. 08-09576.h1

grantedApr 30, 2009· Hon. Shari Dam· hearing

Summary

A 28-year-old family programs assistant was granted a security clearance despite initial concerns under Guideline F (Financial Considerations) due to $47,931 in delinquent debts. The Statement of Reasons detailed numerous outstanding obligations, including various telephone, cable, medical, and credit card debts, as well as parking tickets and a car loan.

The applicant demonstrated a proactive approach to resolving these financial issues. For example, a $54 telephone debt was paid in December 2008, and other telephone debts of $467 and $234 were settled for $233 and $163, respectively, with repayment plans initiated. Several medical debts were addressed with payments or payment plans, including a $79 debt that was paid off and others where $50 monthly payments began in January 2009. Credit card debts of $391 and $798 were also subject to repayment plans, with the latter settled for $336. A $12,930 car loan was current, and arrangements were made for parking tickets.

The judge found that the applicant's financial problems were largely due to circumstances beyond her control, such as her husband's deployment and a medical emergency. Her proactive efforts, including establishing repayment plans and making consistent payments, demonstrated a commitment to resolving her debts. Consequently, the security clearance was granted.

Why the Applicant Prevailed

The applicant demonstrated a proactive approach to resolving her debts, including making payments and establishing repayment plans.
The financial difficulties were largely due to circumstances beyond her control, such as her husband's deployment and a medical emergency.
The applicant provided credible evidence of her efforts to manage her finances responsibly and expressed a commitment to resolving her debts.

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 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 issuedNov 12, 2008
Answer filedDec 5, 2008
Hearing heldMar 27, 2009
Decision dateApr 30, 2009

Cite For

Mitigation of Financial Considerations Under Guideline F
Proactive Debt Resolution Efforts as a Mitigating Factor
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	specific text not stated in this decision $170	For Applicant	Unspecified Financial	Unknown	—	—	—
1.b	$54 was owed to a telephone company. She paid it on December 3, 2008. $54	For Applicant	Utility or Phone Debt	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Credited Debt Paid in Full
1.c	$467 was owed to a telephone company. It was settled for $233 and she began making monthly payments of $65 in November 2008. $467	For Applicant	Utility or Phone Debt	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Credited Payment Plan with Creditor
1.d	$234 was owed to a telephone company. It was settled for $163 in November 2008 and will be paid in full by the end of April 2009. $234	For Applicant	Utility or Phone Debt	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Credited Debt Paid in Full
1.e	$145 is owed to a cable company. She intends to set up a payment plan in the future after completing payments on some of the other debts. $145	For Applicant	Unspecified Financial	Unknown	—	—	—
1.f	$148 is owed to an unidentified creditor. She paid $25 in November and will pay the remaining monies in monthly installments by the end of May 2009. $148	For Applicant	Unspecified Financial	Unknown	—	—	Claimed Payment Plan with Creditor
1.g	$79 was a medical debt. She set up four $20 payments on the account, beginning in January 2009. It is paid. $79	For Applicant	Medical Debt	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Credited Debt Paid in Full
1.h	$50 is a medical debt. She sent that creditor $100 in January 2009. $50	For Applicant	Medical Debt	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Credited Debt Paid in Full
1.i	$50 is a medical debt. She sent that creditor $100 in January 2009. $50	For Applicant	Medical Debt	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Credited Debt Paid in Full
1.j	$86 is a medical debt. She began making monthly payments of $50 in January 2009. $86	For Applicant	Medical Debt	Unknown	—	—	Claimed Payment Plan with Creditor
1.k	$190 is a medical debt. She began making monthly payments of $50 in January 2009. $190	For Applicant	Medical Debt	Unknown	—	—	Claimed Payment Plan with Creditor
1.l	$215 is a medical debt. She began making monthly payments of $50 in January 2009. $215	For Applicant	Medical Debt	Unknown	—	—	Claimed Payment Plan with Creditor
1.m	$190 is a medical debt. She began making monthly payments of $50 in January 2009. $190	For Applicant	Medical Debt	Unknown	—	—	Claimed Payment Plan with Creditor
1.n	$391 is owed to a credit card company. She set up four payments and the account will be paid by May 8, 2009. $391	For Applicant	Credit Card Debt	Unknown	—	—	Claimed Payment Plan with Creditor
1.o	specific text not stated in this decision $152	For Applicant	Unspecified Financial	Unknown	—	—	—
1.p	$798 is owed to a credit card company. The balance of $648 was settled for $336. She began making $50 monthly payments in December 2008 through automatic deductions, and intends to make the remaining payments by May 8, 2009. $798	For Applicant	Credit Card Debt	Unknown	—	—	Claimed Payment Plan with Creditor
1.q	$357 is being paid at $50 per month. She has made two $50 payments on the balance. $357	For Applicant	Unspecified Financial	Unknown	—	—	Claimed Payment Plan with Creditor
1.r	$287 is owed to a telephone company. It was settled for $186. Payment is due on May 15, 2009. $287	For Applicant	Utility or Phone Debt	Unknown	—	—	Claimed Debt Paid in Full
1.s	$12,930 debt owed on a car loan. The account is current. $12,930	For Applicant	Auto Loan Debt	Unknown	—	—	—
1.t–1.w	4 sub-charges — specific text not stated in this decision (for the applicant).	For Applicant			—	—	—
1.x	$866 is a medical bill. She started paying $25 in April 2009. $866	For Applicant	Medical Debt	Unknown	—	—	Claimed Payment Plan with Creditor
1.y	specific text not stated in this decision $118	For Applicant	Unspecified Financial	Unknown	—	—	—
1.z	$273 is a medical debt that she is investigating. $273	For Applicant	Medical Debt	Unknown	—	—	—
1.aa	specific text not stated in this decision $945	For Applicant	Unspecified Financial	Unknown	—	—	—
1.bb	$250 are the same debt that was owed for parking tickets. She made arrangements to pay them in April 2009. $250	For Applicant	Unspecified Financial	Unknown	—	—	Claimed Payment Plan with Creditor
1.cc	$250 are the same debt that was owed for parking tickets. She made arrangements to pay them in April 2009. $250	For Applicant	Unspecified Financial	Unknown	—	—	Claimed Payment Plan with Creditor
1.dd	specific text not stated in this decision $152	For Applicant	Unspecified Financial	Unknown	—	—	—
1.ee	$181 is a medical debt. She paid $100 in February 2009 to settle the account. $181	For Applicant	Medical Debt	Unknown	—	—	Claimed Debt Paid in Full

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

specific text not stated in this decision

$170

For Applicant

Unspecified Financial

Unknown

—

1.b

$54 was owed to a telephone company. She paid it on December 3, 2008.

$54

For Applicant

Utility or Phone Debt

Admitted

—

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

Credited

Debt Paid in Full

1.c

$467 was owed to a telephone company. It was settled for $233 and she began making monthly payments of $65 in November 2008.

$467

For Applicant

Utility or Phone Debt

Admitted

—

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

Credited

Payment Plan with Creditor

1.d

$234 was owed to a telephone company. It was settled for $163 in November 2008 and will be paid in full by the end of April 2009.

$234

For Applicant

Utility or Phone Debt

Admitted

—

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

Credited

Debt Paid in Full

1.e

$145 is owed to a cable company. She intends to set up a payment plan in the future after completing payments on some of the other debts.

$145

For Applicant

Unspecified Financial

Unknown

—

1.f

$148 is owed to an unidentified creditor. She paid $25 in November and will pay the remaining monies in monthly installments by the end of May 2009.

$148

For Applicant

Unspecified Financial

Unknown

—

Claimed

Payment Plan with Creditor

1.g

$79 was a medical debt. She set up four $20 payments on the account, beginning in January 2009. It is paid.

$79

For Applicant

Medical Debt

Admitted

—

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

Credited

Debt Paid in Full

1.h

$50 is a medical debt. She sent that creditor $100 in January 2009.

$50

For Applicant

Medical Debt

Admitted

—

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

Credited

Debt Paid in Full

1.i

$50 is a medical debt. She sent that creditor $100 in January 2009.

$50

For Applicant

Medical Debt

Admitted

—

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

Credited

Debt Paid in Full

1.j

$86 is a medical debt. She began making monthly payments of $50 in January 2009.

$86

For Applicant

Medical Debt

Unknown

—

Claimed

Payment Plan with Creditor

1.k

$190 is a medical debt. She began making monthly payments of $50 in January 2009.

$190

For Applicant

Medical Debt

Unknown

—

Claimed

Payment Plan with Creditor

1.l

$215 is a medical debt. She began making monthly payments of $50 in January 2009.

$215

For Applicant

Medical Debt

Unknown

—

Claimed

Payment Plan with Creditor

1.m

$190 is a medical debt. She began making monthly payments of $50 in January 2009.

$190

For Applicant

Medical Debt

Unknown

—

Claimed

Payment Plan with Creditor

1.n

$391 is owed to a credit card company. She set up four payments and the account will be paid by May 8, 2009.

$391

For Applicant

Credit Card Debt

Unknown

—

Claimed

Payment Plan with Creditor

1.o

specific text not stated in this decision

$152

For Applicant

Unspecified Financial

Unknown

—

1.p

$798 is owed to a credit card company. The balance of $648 was settled for $336. She began making $50 monthly payments in December 2008 through automatic deductions, and intends to make the remaining payments by May 8, 2009.

$798

For Applicant

Credit Card Debt

Unknown

—

Claimed

Payment Plan with Creditor

1.q

$357 is being paid at $50 per month. She has made two $50 payments on the balance.

$357

For Applicant

Unspecified Financial

Unknown

—

Claimed

Payment Plan with Creditor

1.r

$287 is owed to a telephone company. It was settled for $186. Payment is due on May 15, 2009.

$287

For Applicant

Utility or Phone Debt

Unknown

—

Claimed

Debt Paid in Full

1.s

$12,930 debt owed on a car loan. The account is current.

$12,930

For Applicant

Auto Loan Debt

Unknown

—

1.t–1.w

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

For Applicant

—

1.x

$866 is a medical bill. She started paying $25 in April 2009.

$866

For Applicant

Medical Debt

Unknown

—

Claimed

Payment Plan with Creditor

1.y

specific text not stated in this decision

$118

For Applicant

Unspecified Financial

Unknown

—

1.z

$273 is a medical debt that she is investigating.

$273

For Applicant

Medical Debt

Unknown

—

1.aa

specific text not stated in this decision

$945

For Applicant

Unspecified Financial

Unknown

—

1.bb

$250 are the same debt that was owed for parking tickets. She made arrangements to pay them in April 2009.

$250

For Applicant

Unspecified Financial

Unknown

—

Claimed

Payment Plan with Creditor

1.cc

$250 are the same debt that was owed for parking tickets. She made arrangements to pay them in April 2009.

$250

For Applicant

Unspecified Financial

Unknown

—

Claimed

Payment Plan with Creditor

1.dd

specific text not stated in this decision

$152

For Applicant

Unspecified Financial

Unknown

—

1.ee

$181 is a medical debt. She paid $100 in February 2009 to settle the account.

$181

For Applicant

Medical Debt

Unknown

—

Claimed

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