ISCR Case 08-10569.h1

Case Headnote

ISCR Case No. 08-10569.h1

grantedJul 1, 2008· Hon. Juan J. Rivera· hearing

Summary

A 40-year-old administrative assistant for a defense contractor was granted a security clearance despite concerns under Guideline F (Financial Considerations). The applicant faced allegations regarding multiple delinquent debts totaling approximately $40,900. These included a $4,837 debt from a 2006 lawsuit, which she has been paying monthly since November 2006, except during a period of unemployment.

Other debts included a credit card debt of $4,498, for which a judgment was obtained in January 2007, and is now being paid via wage garnishment since September 2008. She also had a $2,051 loan, which she resumed paying through direct deposit after regaining employment in July 2008, and has since paid off. Several smaller debts were either paid, settled, or are currently under negotiation or awaiting payment after other priority debts are addressed.

The administrative judge found that the applicant's financial problems were largely beyond her control, specifically citing unemployment. She demonstrated reliability and good judgment by actively working to resolve her financial issues, establishing payment plans, and maintaining employment. These mitigating efforts led to the decision to grant the security clearance.

Why the Applicant Prevailed

The applicant demonstrated reliability and good judgment in addressing her financial issues.
She established payment plans with creditors and has been making payments within her means.
The financial problems were largely due to circumstances beyond her control, such as unemployment.

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(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
AG ¶ 20(c)rejectedThe 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 ControlNo evidence of financial counseling was presented.

Key Rule Quoted

“The concept of 'meaningful track record necessarily includes evidence of actual debt reduction through payment of debts.'”
— ISCR Case No. 02-30304 at 3 (App. Bd. Apr. 20, 2004)

Procedural Posture

SOR issuedJan 29, 2009
Answer filedMar 30, 2009
Hearing heldMay 19, 2009
Decision dateAug 1, 2009

Cite For

Mitigation of Financial Considerations Under Guideline F
Good-faith Efforts to Resolve 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	SOR ¶ 1.a ($4,837) is a debt resulting from a lawsuit Applicant lost in October 2006. In November 2006, Applicant established a payment plan with the creditor agreeing to pay $100 a month. She has been making regular payments thereafter, except during the period she was unemployed. After finding a new job, Applicant continued making the agreed payments. $4,837	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 (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.b	SOR ¶ 1.b ($4,498) and SOR ¶ 1.e ($4,498) alleged the same credit card debt. Applicant fell behind on her payments and was paying other debts first. In January 2007, the creditor obtained a judgment against her. Applicant has been paying this debt through a garnishment of wages initiated in September 2008. $4,498	For Applicant	Credit Card 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 (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.c	SOR ¶ 1.c ($3,105) is a debt resulting from a broken apartment lease. Applicant is waiting to pay other delinquent debts first and then promised to address this debt. $3,105	For Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.d	SOR ¶ 1.d ($2,026) is a credit card debt. Applicant is waiting to pay other delinquent debts first and then has promised to address this debt. $2,026	For Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.f	SOR ¶ 1.f ($578) and SOR ¶ 1.p ($1,044) alleged the same debt. At the hearing, Applicant testified she had settled the debt for less than the total value. Documents submitted post-hearing confirm Applicant settled the debt in June 2009, and is making payments. $578	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 (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.j	SOR ¶ 1.j ($568). In her response to the SOR, Applicant admitted this debt and indicated she was in communication with the creditor and was trying to settle the debt. At her hearing, she testified she had settled the debt, but presented no documentary evidence to corroborate her testimony. Post-hearing Applicant submitted documents corroborating she settled the debt, and that she made a $178 payment. $568	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 (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.l	SOR ¶ 1.l ($2,051). This debt concerns a loan Applicant obtained. She stopped making payments when she lost her job. In July 2008, she started working again and resumed paying her loan through direct deposit. After her hearing, Applicant submitted a letter from the creditor stating she paid off the debt. $2,051	For Applicant	Personal 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 (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.m	SOR ¶ 1.m ($155). Applicant paid this debt. $155	For Applicant	Unspecified Financial	Admitted	—	—	Documented Debt Paid in Full
1.n	SOR ¶ 1.n ($387). Applicant admitted this debt. She is undergoing settlement negotiations with the creditor. $387	For Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

SOR ¶ 1.a ($4,837) is a debt resulting from a lawsuit Applicant lost in October 2006. In November 2006, Applicant established a payment plan with the creditor agreeing to pay $100 a month. She has been making regular payments thereafter, except during the period she was unemployed. After finding a new job, Applicant continued making the agreed payments.

$4,837

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

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

Documented

Debt Paid in Full

1.b

SOR ¶ 1.b ($4,498) and SOR ¶ 1.e ($4,498) alleged the same credit card debt. Applicant fell behind on her payments and was paying other debts first. In January 2007, the creditor obtained a judgment against her. Applicant has been paying this debt through a garnishment of wages initiated in September 2008.

$4,498

For Applicant

Credit Card 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

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

Documented

Debt Paid in Full

1.c

SOR ¶ 1.c ($3,105) is a debt resulting from a broken apartment lease. Applicant is waiting to pay other delinquent debts first and then promised to address this debt.

$3,105

For Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.d

SOR ¶ 1.d ($2,026) is a credit card debt. Applicant is waiting to pay other delinquent debts first and then has promised to address this debt.

$2,026

For Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.f

SOR ¶ 1.f ($578) and SOR ¶ 1.p ($1,044) alleged the same debt. At the hearing, Applicant testified she had settled the debt for less than the total value. Documents submitted post-hearing confirm Applicant settled the debt in June 2009, and is making payments.

$578

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

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

Documented

Debt Paid in Full

1.j

SOR ¶ 1.j ($568). In her response to the SOR, Applicant admitted this debt and indicated she was in communication with the creditor and was trying to settle the debt. At her hearing, she testified she had settled the debt, but presented no documentary evidence to corroborate her testimony. Post-hearing Applicant submitted documents corroborating she settled the debt, and that she made a $178 payment.

$568

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

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

Documented

Debt Paid in Full

1.l

SOR ¶ 1.l ($2,051). This debt concerns a loan Applicant obtained. She stopped making payments when she lost her job. In July 2008, she started working again and resumed paying her loan through direct deposit. After her hearing, Applicant submitted a letter from the creditor stating she paid off the debt.

$2,051

For Applicant

Personal 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

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

Documented

Debt Paid in Full

1.m

SOR ¶ 1.m ($155). Applicant paid this debt.

$155

For Applicant

Unspecified Financial

Admitted

—

Documented

Debt Paid in Full

1.n

SOR ¶ 1.n ($387). Applicant admitted this debt. She is undergoing settlement negotiations with the creditor.

$387

For Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

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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