ISCR Case 09-02294.h1

Case Headnote

ISCR Case No. 09-02294.h1

grantedApr 21, 2010· Hon. Mary E. Henry· hearing

Summary

A 41-year-old technical project lead for a Department of Defense contractor was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). These concerns arose from financial difficulties in 2002, following a separation and business failure.

The Statement of Reasons detailed several financial allegations. The applicant paid a $358 medical bill in December 2009 and a $760 communications bill in January 2010 after disputing it. A $12,000 debt, for which a judgment was obtained in December 2006, was settled and paid in March 2010 through her attorney. Additionally, a $15,000 collection account was resolved in December 2009. One credit card debt remained unpaid, with the applicant unsure of the current creditor.

The clearance was granted because the applicant demonstrated significant efforts to resolve her debts, including paying off several obligations and maintaining a stable income. She showed good-faith efforts by negotiating settlements with creditors, working with a financial counselor and an attorney. Her financial situation was stable at the time of the decision, with sufficient income to manage expenses.

Why the Applicant Prevailed

The applicant took significant actions to resolve her financial issues, including paying off multiple debts and maintaining a stable income.
She demonstrated a good-faith effort to negotiate and settle her debts, including working with a financial counselor and an attorney.
The applicant's financial situation was stable at the time of the decision, with sufficient income to manage her expenses.

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

Key Rule Quoted

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

Procedural Posture

SOR issuedOct 22, 2009
Answer filedNov 24, 2009
Hearing heldFeb 24, 2010
Decision dateApr 21, 2010

Cite For

Demonstrating a Good-faith Effort to Resolve Financial Issues Under Guideline F
Consideration of the Whole-person Concept in Security Clearance Decisions
Mitigating Financial Concerns Due to Circumstances Beyond the Applicant's Control

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 paid the $358 medical bill in allegation 1.a on December 3, 2009 $358	For Applicant	Medical Debt	Admitted	—	—	—
1.b	The creditor for the $12,000 debt in allegation 1.b obtained a judgment against Applicant in December 2006. Applicant, through her attorney, has been negotiating a settlement of this debt. The parties reached an agreement to resolve this debt in March 2010, and Applicant paid the settlement March 24, 2010. $12,000	For Applicant	Judgment Against Applicant	Admitted	—	—	—
1.c	The credit card debt in allegation 1.c remains unpaid. Applicant does not know which creditor, if any, owns this debt.	For Applicant	Credit Card Debt	Admitted	—	—	—
1.d	Applicant paid the $760 debt collection account in allegation 1.d for a communications bill on January 21, 2010, after disputing this bill. $760	For Applicant	Unspecified Financial	Admitted	—	—	—
1.e	Applicant resolved the $15,000 collection account in allegation 1.e on December 15, 2009. $15,000	For Applicant	Unspecified Financial	Admitted	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant paid the $358 medical bill in allegation 1.a on December 3, 2009

$358

For Applicant

Medical Debt

Admitted

—

1.b

The creditor for the $12,000 debt in allegation 1.b obtained a judgment against Applicant in December 2006. Applicant, through her attorney, has been negotiating a settlement of this debt. The parties reached an agreement to resolve this debt in March 2010, and Applicant paid the settlement March 24, 2010.

$12,000

For Applicant

Judgment Against Applicant

Admitted

—

1.c

The credit card debt in allegation 1.c remains unpaid. Applicant does not know which creditor, if any, owns this debt.

For Applicant

Credit Card Debt

Admitted

—

1.d

Applicant paid the $760 debt collection account in allegation 1.d for a communications bill on January 21, 2010, after disputing this bill.

$760

For Applicant

Unspecified Financial

Admitted

—

1.e

Applicant resolved the $15,000 collection account in allegation 1.e on December 15, 2009.

$15,000

For Applicant

Unspecified Financial

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