ISCR Case 09-01591.h1

Case Headnote

ISCR Case No. 09-01591.h1

grantedAug 10, 2010· Hon. Carol G. Ricciardello· hearing

Summary

A 53-year-old woman was granted a security clearance under Guideline F (Financial Considerations) despite initial concerns about several outstanding debts. The applicant's financial difficulties were primarily linked to her husband's drug use and failure to provide child support.

The Statement of Reasons detailed six specific debts. These included a $74 checking account debt, which she paid in August 2009 after an oversight in making the final payment. A $1,418 debt, reported delinquent in 2003, was presumed resolved after a court case was dismissed in March 2010. Her student loan debt, totaling approximately $79,313, was consolidated, and she began making monthly payments of $180 in March 2010, with some loans deferred until December 2010. Additionally, a $1,033 collection debt is being resolved through eight monthly payments of $114, with four payments made by June 2010. Finally, a $100 medical debt, incurred in 2007, was paid in February 2010 once she became aware of it.

The judge found that the applicant had made significant good-faith efforts to resolve her debts and demonstrated responsible financial management. Her financial issues were largely attributed to circumstances beyond her control, and she is now paying current bills on time and living within her means. Consequently, her security clearance was granted.

Why the Applicant Prevailed

The applicant demonstrated a good-faith effort to resolve her debts and manage her finances responsibly.
The financial issues were largely attributed to her husband's actions, which were beyond her control.
The applicant is now paying her current bills on time and living within her means.

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(a)appliedBehavior Happened so Long Ago, Was Infrequent, or Occurred Under Circumstances Unlikely to Recur
AG ¶ 20(b)appliedConditions That Resulted in Financial Problems Were Largely Beyond the Person's Control
AG ¶ 20(c)appliedReceived Counseling for the Problem And/or Clear Indications That the Problem Is Being Resolved
AG ¶ 20(d)appliedInitiated a Good-faith Effort to Repay Overdue Creditors or Resolve Debts
AG ¶ 20(e)appliedReasonable Basis to Dispute the Legitimacy of the Past-due Debt

Key Rule Quoted

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

Procedural Posture

SOR issuedFeb 1, 2010
Answer filedMar 6, 2010
Hearing heldJul 12, 2010
Decision dateAug 10, 2010

Cite For

Mitigation of Financial Issues Under Guideline F Due to Circumstances Beyond the Applicant's Control
Good-faith Efforts to Resolve Debts as a Basis for Granting Security Clearance
Consideration of the Whole-person Concept in Financial Cases

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 debt in SOR ¶1.a ($74) was a checking account that was closed in October 2005. Applicant was to make four payments of $68 beginning in November 2006. She made three payments and did not make the fourth, and it went to collection in January 2009. She paid the balance owed in August 2009. Applicant stated her failure to make the last payment was an oversight. This is the same debt as alleged in SOR ¶ 1.d. $74	For Applicant	Unspecified Financial	Admitted	—	—	—
1.b	The debt in SOR ¶ 1.b ($1,418) was reported delinquent in 2003. Applicant stated in her answer to the SOR that she began to take action on the debt in November 2006. She agreed to make ten payments of $25. She missed a payment and the collection company then wanted six lump sum payments, which she could not afford. The debt was sold to a collection firm who filed a claim in court. After to the claim, the firm dissolved and Applicant was waiting to hear the status of the court date. She made her last payment on the debt sometime in 2007. On March 22, 2010, the court case was dismissed. There is no further court action on this debt, and it is presumed to be resolved. $1,418	For Applicant	Unspecified Financial	Admitted	—	—	—
1.c	The debt in SOR ¶ 1.c ($24,000) is for a student loan. Applicant attended college from 1995 until 2003. She financed her education through student loans. Each semester she would get another student loan. Her total student loan debt is approximately $79,313. She consolidated her student loans. She made two payments of $480.77 in January and February 2010. She has an agreement with the student loan creditor to pay $180 a month, which began in March 2010, and will continue until December 2010, and then her finances will be reevaluated to determine if the payments should be changed. She also stated some of her student loans are deferred until December 2010. $24,000	For Applicant	Student Loan Debt	Denied	—	—	—
1.d	specific text not stated in this decision	For Applicant	Unspecified Financial	Unknown	—	—	—
1.e	The debt in SOR ¶1.e ($1,033) was forwarded for collection in October 2006. Applicant made arrangements to pay $25 a month. She was presented with a settlement offer in June 2009 to pay $516.94 to settle the debt. She stated she made one or two payments of $172 and then could not pay the remaining amount. She now has a new agreement with the creditor and she will make eight monthly payments of $114. She provided documentation that showed she paid $114.67 in February, April, May, and June 2010. Applicant is resolving this debt. $1,033	For Applicant	Unspecified Financial	Admitted	—	—	—
1.f	The debt in SOR ¶1.f ($100) is a medical debt. Applicant incurred the debt in 2007, and it went to collection in 2008. She was unaware she owed the debt, and when she became aware, she paid it in February 2010. She provided a document showing $100 was transferred to the creditor. $100	For Applicant	Medical Debt	Admitted	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

The debt in SOR ¶1.a ($74) was a checking account that was closed in October 2005. Applicant was to make four payments of $68 beginning in November 2006. She made three payments and did not make the fourth, and it went to collection in January 2009. She paid the balance owed in August 2009. Applicant stated her failure to make the last payment was an oversight. This is the same debt as alleged in SOR ¶ 1.d.

$74

For Applicant

Unspecified Financial

Admitted

—

1.b

The debt in SOR ¶ 1.b ($1,418) was reported delinquent in 2003. Applicant stated in her answer to the SOR that she began to take action on the debt in November 2006. She agreed to make ten payments of $25. She missed a payment and the collection company then wanted six lump sum payments, which she could not afford. The debt was sold to a collection firm who filed a claim in court. After to the claim, the firm dissolved and Applicant was waiting to hear the status of the court date. She made her last payment on the debt sometime in 2007. On March 22, 2010, the court case was dismissed. There is no further court action on this debt, and it is presumed to be resolved.

$1,418

For Applicant

Unspecified Financial

Admitted

—

1.c

The debt in SOR ¶ 1.c ($24,000) is for a student loan. Applicant attended college from 1995 until 2003. She financed her education through student loans. Each semester she would get another student loan. Her total student loan debt is approximately $79,313. She consolidated her student loans. She made two payments of $480.77 in January and February 2010. She has an agreement with the student loan creditor to pay $180 a month, which began in March 2010, and will continue until December 2010, and then her finances will be reevaluated to determine if the payments should be changed. She also stated some of her student loans are deferred until December 2010.

$24,000

For Applicant

Student Loan Debt

Denied

—

1.d

specific text not stated in this decision

For Applicant

Unspecified Financial

Unknown

—

1.e

The debt in SOR ¶1.e ($1,033) was forwarded for collection in October 2006. Applicant made arrangements to pay $25 a month. She was presented with a settlement offer in June 2009 to pay $516.94 to settle the debt. She stated she made one or two payments of $172 and then could not pay the remaining amount. She now has a new agreement with the creditor and she will make eight monthly payments of $114. She provided documentation that showed she paid $114.67 in February, April, May, and June 2010. Applicant is resolving this debt.

$1,033

For Applicant

Unspecified Financial

Admitted

—

1.f

The debt in SOR ¶1.f ($100) is a medical debt. Applicant incurred the debt in 2007, and it went to collection in 2008. She was unaware she owed the debt, and when she became aware, she paid it in February 2010. She provided a document showing $100 was transferred to the creditor.

$100

For Applicant

Medical Debt

Admitted

—

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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