ISCR Case 08-10451.h1

Case Headnote

ISCR Case No. 08-10451.h1

grantedMay 21, 2010· Hon. Juan J. Rivera· hearing

Summary

A 33-year-old network engineer and veteran was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The applicant faced allegations regarding 14 delinquent debts totaling approximately $23,000.

The applicant demonstrated substantial efforts to resolve these issues. He paid a $163 debt in February 2010 and settled another for less than the full amount owed. Several debts were paid between November and December 2009, and two more were paid in February 2010. He also established a payment agreement for one debt in September 2009, making six consecutive payments. For other debts, he initiated disputes through credit bureaus or directly with creditors, including a large $11,425 judgment he claimed was not his and of which he was unaware. He also faced a medical debt where the creditor was unidentified, making it difficult to address.

The judge determined that the applicant's financial problems were largely due to circumstances beyond his control, such as unemployment and underemployment. Given his significant actions to resolve his financial obligations, including settling and paying nine of the alleged debts and establishing payment plans, the judge found that mitigating conditions applied, and the security clearance was granted.

Why the Applicant Prevailed

Applicant established a plan to resolve his financial problems and took significant actions to implement it.
He settled and paid nine of the alleged debts, demonstrating good faith efforts to address his financial obligations.
The judge found that his financial issues were largely due to circumstances beyond his control, such as unemployment and underemployment.

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 Beyond the Person's ControlApplicant's financial problems were partly due to unemployment and underemployment.
AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue CreditorsApplicant demonstrated good faith by settling and establishing payment plans for debts.
AG ¶ 20(e)appliedReasonable Basis to Dispute DebtsApplicant contested the validity of several debts and provided evidence of disputes.

Key Rule Quoted

“The protection of the national security is the paramount consideration.”

Procedural Posture

SOR issuedNov 5, 2009
Answer filedDec 4, 2009
Hearing heldFeb 17, 2010
Decision dateMay 21, 2010

Cite For

Mitigation of Financial Concerns Under Guideline F
Good Faith Efforts in Resolving Delinquent Debts
Impact of Circumstances Beyond Control 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	This debt was paid in February 2010 ($163) (AE 7). $163	For Applicant	Unspecified Financial	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.b	He claimed he disputed this debt telephonically prior to the hearing. He disputed it again in writing in March 2010. (AE 7)	For Applicant	Unspecified Financial	Denied	—	(e) reasonable, documented basis to dispute the debt	Claimed Debt Disputed with Creditor
1.c	He established a payment agreement in September 2009, and has made six consecutive payments. A(E 7)	For Applicant	Unspecified Financial	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Payment Plan with Creditor
1.d	He settled and paid this debt for less than the amount owed. (AE 7)	For Applicant	Unspecified Financial	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.e	These debts were paid in November-December 2009. (AE 7)	For Applicant	Unspecified Financial	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.f	These debts were paid in November-December 2009. (AE 7)	For Applicant	Unspecified Financial	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.g	These debts were paid in November-December 2009. (AE 7)	For Applicant	Unspecified Financial	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.h	Applicant disputed this debt through the credit bureau. (GE 5) He claimed he was told the dispute was resolved in his favor and that he was informed the debt was removed from his credit report. He presented no documentary evidence to show the account was resolved in his favor, or that it was removed from his credit report.	For Applicant	Unspecified Financial	Denied	—	(e) reasonable, documented basis to dispute the debt	Claimed Debt Disputed with Creditor
1.i	An $11,425 judgment was filed against Applicant in 2007. He claimed this is not his debt, that he was not notified of the judgment proceedings against him, and that he was not aware of the debt until his background interview. He claimed he disputed this debt telephonically in October 2009 and January 2010. He presented documentary evidence he disputed it again in writing in March 2010. (AE 7) Applicant intends to dispute the judgment. He promised to pay the debt if it is his financial obligation. $11,425	For Applicant	Unspecified Financial	Denied	—	(e) reasonable, documented basis to dispute the debt	Claimed Debt Disputed with Creditor
1.j	specific text not stated in this decision	For Applicant	Unspecified Financial	Unknown	—	—	—
1.k	This is a medical debt for an unidentified creditor. The Government conceded it would be difficult for Applicant to address the debt without knowing the identity of the creditor.	For Applicant	Unspecified Financial	Denied	—	—	—
1.l	Applicant claimed he disputed this debt in November 2009. As of his hearing, he had not received a reply.	For Applicant	Unspecified Financial	Denied	—	(e) reasonable, documented basis to dispute the debt	Claimed Debt Disputed with Creditor
1.m	This debt was paid in February 2010. (AE 7)	For Applicant	Unspecified Financial	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.n	This debt was paid in February 2010. (AE 7)	For Applicant	Unspecified Financial	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

This debt was paid in February 2010 ($163) (AE 7).

$163

For Applicant

Unspecified Financial

Admitted

—

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

Documented

Debt Paid in Full

1.b

He claimed he disputed this debt telephonically prior to the hearing. He disputed it again in writing in March 2010. (AE 7)

For Applicant

Unspecified Financial

Denied

—

(e) reasonable, documented basis to dispute the debt

Claimed

Debt Disputed with Creditor

1.c

He established a payment agreement in September 2009, and has made six consecutive payments. A(E 7)

For Applicant

Unspecified Financial

Admitted

—

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

Documented

Payment Plan with Creditor

1.d

He settled and paid this debt for less than the amount owed. (AE 7)

For Applicant

Unspecified Financial

Admitted

—

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

Documented

Debt Paid in Full

1.e

These debts were paid in November-December 2009. (AE 7)

For Applicant

Unspecified Financial

Admitted

—

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

Documented

Debt Paid in Full

1.f

These debts were paid in November-December 2009. (AE 7)

For Applicant

Unspecified Financial

Admitted

—

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

Documented

Debt Paid in Full

1.g

These debts were paid in November-December 2009. (AE 7)

For Applicant

Unspecified Financial

Admitted

—

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

Documented

Debt Paid in Full

1.h

Applicant disputed this debt through the credit bureau. (GE 5) He claimed he was told the dispute was resolved in his favor and that he was informed the debt was removed from his credit report. He presented no documentary evidence to show the account was resolved in his favor, or that it was removed from his credit report.

For Applicant

Unspecified Financial

Denied

—

(e) reasonable, documented basis to dispute the debt

Claimed

Debt Disputed with Creditor

1.i

An $11,425 judgment was filed against Applicant in 2007. He claimed this is not his debt, that he was not notified of the judgment proceedings against him, and that he was not aware of the debt until his background interview. He claimed he disputed this debt telephonically in October 2009 and January 2010. He presented documentary evidence he disputed it again in writing in March 2010. (AE 7) Applicant intends to dispute the judgment. He promised to pay the debt if it is his financial obligation.

$11,425

For Applicant

Unspecified Financial

Denied

—

(e) reasonable, documented basis to dispute the debt

Claimed

Debt Disputed with Creditor

1.j

specific text not stated in this decision

For Applicant

Unspecified Financial

Unknown

—

1.k

This is a medical debt for an unidentified creditor. The Government conceded it would be difficult for Applicant to address the debt without knowing the identity of the creditor.

For Applicant

Unspecified Financial

Denied

—

1.l

Applicant claimed he disputed this debt in November 2009. As of his hearing, he had not received a reply.

For Applicant

Unspecified Financial

Denied

—

(e) reasonable, documented basis to dispute the debt

Claimed

Debt Disputed with Creditor

1.m

This debt was paid in February 2010. (AE 7)

For Applicant

Unspecified Financial

Admitted

—

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

Documented

Debt Paid in Full

1.n

This debt was paid in February 2010. (AE 7)

For Applicant

Unspecified Financial

Admitted

—

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

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