ISCR Case 09-03269.h1

Case Headnote

ISCR Case No. 09-03269.h1

grantedSep 28, 2010· Hon. Carol G. Ricciardello· hearing

Summary

A 52-year-old retired Navy Lieutenant Commander was granted a security clearance despite concerns under Guideline F (Financial Considerations). The applicant's financial issues stemmed primarily from his ex-wife's gambling and other family obligations, leading to several delinquent debts.

The Statement of Reasons detailed twelve specific debts. These included credit card debts ranging from $4,229 to $23,948, a $212 utility bill, and a $2,054 debt to an apartment complex for which he co-signed. The applicant demonstrated active efforts to resolve these issues. For example, he settled a $23,948 credit card debt for a lump sum of $4,200 and paid off a $5,027 credit card debt by liquidating his Individual Retirement Account. He also made consistent payments on several other accounts and had plans to begin payments on others, including a $5,948 credit card debt and the utility bill.

The clearance was granted because the applicant's financial difficulties were largely beyond his control. He had made significant progress in reducing his debts, including paying off or settling several accounts, and had a structured plan for addressing his remaining obligations. His responsible financial behavior since retirement further supported the decision.

Why the Applicant Prevailed

The applicant's financial difficulties were largely due to circumstances beyond his control, including his ex-wife's gambling problem.
He has made significant progress in reducing his debts, having paid off or settled several accounts.
The applicant has a structured plan for addressing his remaining debts and has shown responsible financial behavior since retirement.

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)appliedClear Indications That the Problem Is Being Resolved or Is Under Control
AG ¶ 20(d)appliedInitiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts

Key Rule Quoted

“In evaluating Guideline F cases, the Board has previously noted that the concept of ‘meaningful track record’ necessarily includes evidence of actual debt reduction through payment of debts.”
— DOHA Appeal Board

Procedural Posture

SOR issuedMar 30, 2010
Answer filedApr 22, 2010
Hearing heldAug 25, 2010
Decision dateSep 28, 2010

Cite For

Mitigating Conditions Under Guideline F
Impact of Personal Circumstances on Financial Obligations
Evidence of Debt Reduction as a Factor in Security Clearance Decisions

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 is a credit card debt ($5,948). It is not paid. Applicant has a settlement offer and intends to begin making payments on the debt in the next month. $5,948	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 (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Claimed Debt Paid in Full
1.b	SOR ¶ 1.b is a credit card debt ($23,948). This credit card was one that his ex-wife used. Applicant paid $200 a month for a year and then the creditor agreed to a lump sum settlement payment of $4,200. The debt is resolved. $23,948	For Applicant	Credit Card Debt	Admitted	—	—	Documented Debt Paid in Full
1.c	SOR ¶ 1.c is a credit card debt ($12,163). Applicant intends to begin payments in September 2010. He anticipates paying $100 a month. Department Counsel noted that this debt may be a duplicate. $12,163	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 (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Claimed Debt Disputed with Creditor
1.d	SOR ¶ 1.d is a credit card debt ($9,112). Applicant has been making monthly payments of $200 through an automatic withdrawal from his account. He has been making payments since July 2009, and the balance owed is approximately $6,800. He hopes to negotiate a settlement in the near future. $9,112	For Applicant	Credit Card Debt	Admitted	—	—	Documented Payment Plan with Creditor
1.e	SOR ¶ 1.e is a credit card debt ($8,426). Applicant has not paid this debt, but anticipates beginning $100 monthly payments in September 2010. It is part of his payment plan. $8,426	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 (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Claimed Payment Plan with Creditor
1.f	SOR ¶ 1.f is a debt for a utility bill ($212). Applicant explained that when his ex-wife moved from their residence, she did not pay the final bill. Applicant intended to pay the bill on September 1, 2010. It is part of his payment plan. $212	For Applicant	Utility or Phone 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	Claimed Payment Plan with Creditor
1.g	SOR ¶ 1.g is credit card debt ($4,404). Applicant has been making automatic monthly payments. $4,404	For Applicant	Credit Card Debt	Admitted	—	—	Documented Payment Plan with Creditor
1.h	SOR ¶ 1.h is a credit card debt ($4,229). Applicant has been making $100 monthly payments since September 2009. He anticipates increasing his monthly payments as more of his resources become available. $4,229	For Applicant	Credit Card Debt	Admitted	—	—	Documented Payment Plan with Creditor
1.i	SOR ¶ 1.i ($6,418) is a revolving account that Applicant originally believed was a car debt. He was mistaken and intends to add this debt to his budget to repay it. $6,418	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	Claimed Debt Disputed with Creditor
1.j	SOR ¶ 1.j is a credit card debt ($5,027). Applicant settled and paid the debt in July 2010. He liquidated his Individual Retirement Account to pay the debt. $5,027	For Applicant	Credit Card Debt	Admitted	—	—	Documented Debt Paid in Full
1.k	SOR ¶ 1.k is a credit card debt ($5,323). Applicant intends to pay $100 a month as part of his payment plan. $5,323	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 (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Claimed Payment Plan with Creditor
1.l	SOR ¶ 1.l ($2,054) is a debt to an apartment complex. Applicant’s daughter vacated an apartment and there were damage and cleaning charges. Applicant had co-signed on the apartment. He has not paid the debt, but intended to begin in September 2010. $2,054	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	Claimed Payment Plan with Creditor

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

SOR ¶ 1.a is a credit card debt ($5,948). It is not paid. Applicant has a settlement offer and intends to begin making payments on the debt in the next month.

$5,948

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

(c) received/receiving counseling; problem being resolved

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

Claimed

Debt Paid in Full

1.b

SOR ¶ 1.b is a credit card debt ($23,948). This credit card was one that his ex-wife used. Applicant paid $200 a month for a year and then the creditor agreed to a lump sum settlement payment of $4,200. The debt is resolved.

$23,948

For Applicant

Credit Card Debt

Admitted

—

Documented

Debt Paid in Full

1.c

SOR ¶ 1.c is a credit card debt ($12,163). Applicant intends to begin payments in September 2010. He anticipates paying $100 a month. Department Counsel noted that this debt may be a duplicate.

$12,163

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

(c) received/receiving counseling; problem being resolved

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

Claimed

Debt Disputed with Creditor

1.d

SOR ¶ 1.d is a credit card debt ($9,112). Applicant has been making monthly payments of $200 through an automatic withdrawal from his account. He has been making payments since July 2009, and the balance owed is approximately $6,800. He hopes to negotiate a settlement in the near future.

$9,112

For Applicant

Credit Card Debt

Admitted

—

Documented

Payment Plan with Creditor

1.e

SOR ¶ 1.e is a credit card debt ($8,426). Applicant has not paid this debt, but anticipates beginning $100 monthly payments in September 2010. It is part of his payment plan.

$8,426

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

(c) received/receiving counseling; problem being resolved

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

Claimed

Payment Plan with Creditor

1.f

SOR ¶ 1.f is a debt for a utility bill ($212). Applicant explained that when his ex-wife moved from their residence, she did not pay the final bill. Applicant intended to pay the bill on September 1, 2010. It is part of his payment plan.

$212

For Applicant

Utility or Phone 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

Claimed

Payment Plan with Creditor

1.g

SOR ¶ 1.g is credit card debt ($4,404). Applicant has been making automatic monthly payments.

$4,404

For Applicant

Credit Card Debt

Admitted

—

Documented

Payment Plan with Creditor

1.h

SOR ¶ 1.h is a credit card debt ($4,229). Applicant has been making $100 monthly payments since September 2009. He anticipates increasing his monthly payments as more of his resources become available.

$4,229

For Applicant

Credit Card Debt

Admitted

—

Documented

Payment Plan with Creditor

1.i

SOR ¶ 1.i ($6,418) is a revolving account that Applicant originally believed was a car debt. He was mistaken and intends to add this debt to his budget to repay it.

$6,418

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

Claimed

Debt Disputed with Creditor

1.j

SOR ¶ 1.j is a credit card debt ($5,027). Applicant settled and paid the debt in July 2010. He liquidated his Individual Retirement Account to pay the debt.

$5,027

For Applicant

Credit Card Debt

Admitted

—

Documented

Debt Paid in Full

1.k

SOR ¶ 1.k is a credit card debt ($5,323). Applicant intends to pay $100 a month as part of his payment plan.

$5,323

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

(c) received/receiving counseling; problem being resolved

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

Claimed

Payment Plan with Creditor

1.l

SOR ¶ 1.l ($2,054) is a debt to an apartment complex. Applicant’s daughter vacated an apartment and there were damage and cleaning charges. Applicant had co-signed on the apartment. He has not paid the debt, but intended to begin in September 2010.

$2,054

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

Claimed

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

ANALYSIS

WHOLE PERSON CONCEPT

FORMAL FINDINGS

CONCLUSION

FOOTNOTES