ISCR Case 08-10200.h1

Case Headnote

ISCR Case No. 08-10200.h1

grantedSep 22, 2009· Hon. Darlene Lokey Anderson· hearing

Summary

A 31-year-old defense contractor and former Marine was granted a security clearance despite approximately $88,000 in delinquent debt, primarily stemming from a divorce. The case was evaluated under Guideline F (Financial Considerations), with the Statement of Reasons detailing several specific financial allegations.

These allegations included a $516 debt that was paid off, a $2,729 debt disputed by the applicant as identity theft, and a $261 debt that was no longer reflected on his credit report as owing. Additionally, the applicant was making $100 monthly payments on a $3,632 debt and a $6,342 debt (now approximately $5,842). The largest debt, $78,108 (now $75,008.68), resulted from an equity line of credit used for a divorce settlement and a subsequent home foreclosure in April 2008, for which he was also making $100 monthly payments.

The clearance was granted because the applicant demonstrated that his financial difficulties were largely beyond his control, specifically citing divorce and child custody issues. He also made good faith efforts to resolve his debts, including establishing payment plans and paying off some obligations. Favorable character references further supported his trustworthiness and reliability.

Why the Applicant Prevailed

The applicant demonstrated that his financial difficulties were largely due to circumstances beyond his control, including divorce and child custody issues.
He made good faith efforts to repay overdue creditors and resolve his debts, including establishing payment plans and paying off some debts.
The applicant provided favorable character references that supported his trustworthiness and reliability.

Conditions Referenced

Disqualifying

19(a)raisedInability or Unwillingness to Satisfy Debts
19(c)raisedA History of Not Meeting Financial Obligations

Mitigating

20(b)appliedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
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
20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts

Key Rule Quoted

“The adjudicative process is an examination of a sufficient period of a person’s life to make an affirmative determination that the person is an acceptable security risk.”

Procedural Posture

SOR issuedApr 9, 2009
Answer filedMay 5, 2009
Hearing heldAug 21, 2009
Decision dateSep 22, 2009

Cite For

Mitigating Conditions Under Guideline F Related to Financial Difficulties Due to Circumstances Beyond Control
Good Faith Efforts to Resolve Financial Issues
Whole Person Assessment in Security Clearance Determinations

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	Applicant was indebted to a creditor in the amount of $516.00. The Applicant has paid off the debt and it is no longer reflected as owing on his most recent credit report. $516	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 (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.b	Applicant disputes the debt to a creditor in the amount of $2,729.00. He contends that the debt was never his debt. When he learned of the debt in 2006, he contacted the creditor and informed them that he never authorized the account, that it was apparently a situation of stolen identity and a fraudulent credit card. $2,729	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly	Claimed Debt Disputed with Creditor
1.c	Applicant was indebted to a creditor in the amount of $261.00. Applicant contends that the debt has been paid, as the debt is no longer reflected on his credit report as owing. $261	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 (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.d	Applicant was indebted to a creditor in the amount of $3,632.00. Since April 2009, the Applicant has been making monthly payments of $100.00 toward the debt to get it resolved. The creditor has agreed to this payment plan. $3,632	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 (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Documented Payment Plan with Creditor
1.e	Applicant was indebted to a creditor in the amount of $6,342.00. The Applicant has been making monthly payments of $100.00 toward the debt to get it resolved. He currently owes approximately $5,842.00. The creditor has agreed to this payment plan. $6,342	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 (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Documented Payment Plan with Creditor
1.f	Applicant was indebted in the amount of $78,108.00. He explained that in 2005, he obtained an equity line of credit on his home and gave most of the money to his ex-wife as a divorce settlement. Although he had tried to keep the house, his home was foreclosed upon in April 2008, and the house was sold. Applicant is making payments of $100.00 monthly toward the debt to resolve it. He currently owes $75,008.68. $78,008	For Applicant	Mortgage or Home Loan Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Documented Payment Plan with Creditor

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant was indebted to a creditor in the amount of $516.00. The Applicant has paid off the debt and it is no longer reflected as owing on his most recent credit report.

$516

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

(c) received/receiving counseling; problem being resolved

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

Documented

Debt Paid in Full

1.b

Applicant disputes the debt to a creditor in the amount of $2,729.00. He contends that the debt was never his debt. When he learned of the debt in 2006, he contacted the creditor and informed them that he never authorized the account, that it was apparently a situation of stolen identity and a fraudulent credit card.

$2,729

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

Claimed

Debt Disputed with Creditor

1.c

Applicant was indebted to a creditor in the amount of $261.00. Applicant contends that the debt has been paid, as the debt is no longer reflected on his credit report as owing.

$261

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

(c) received/receiving counseling; problem being resolved

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

Documented

Debt Paid in Full

1.d

Applicant was indebted to a creditor in the amount of $3,632.00. Since April 2009, the Applicant has been making monthly payments of $100.00 toward the debt to get it resolved. The creditor has agreed to this payment plan.

$3,632

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

(c) received/receiving counseling; problem being resolved

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

Documented

Payment Plan with Creditor

1.e

Applicant was indebted to a creditor in the amount of $6,342.00. The Applicant has been making monthly payments of $100.00 toward the debt to get it resolved. He currently owes approximately $5,842.00. The creditor has agreed to this payment plan.

$6,342

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

(c) received/receiving counseling; problem being resolved

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

Documented

Payment Plan with Creditor

1.f

Applicant was indebted in the amount of $78,108.00. He explained that in 2005, he obtained an equity line of credit on his home and gave most of the money to his ex-wife as a divorce settlement. Although he had tried to keep the house, his home was foreclosed upon in April 2008, and the house was sold. Applicant is making payments of $100.00 monthly toward the debt to resolve it. He currently owes $75,008.68.

$78,008

For Applicant

Mortgage or Home Loan Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

(c) received/receiving counseling; problem being resolved

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

Documented

Payment Plan with Creditor

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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

CONCLUSION

FORMAL FINDINGS

DECISION