ISCR Case 09-06433.h1

Case Headnote

ISCR Case No. 09-06433.h1

grantedJan 21, 2011· Hon. Michael H. Leonard· hearing

Summary

This case involved a 32-year-old IT employee seeking a security clearance, with the primary concern falling under Guideline F (Financial Considerations). The Statement of Reasons detailed several financial issues, including a Chapter 7 bankruptcy in 2005 that discharged approximately $100,000 in liabilities. Other allegations noted that the applicant had paid or settled multiple medical debts, was making regular payments on one medical account, and faced a collection account of about $104,000 from a period of hospitalization. Additionally, a $701 collection account remained unresolved.

Disqualifying conditions under Guideline F were raised, but the judge applied mitigating conditions. The decision to grant the clearance was based on several factors. The applicant's financial difficulties were largely attributed to uninsured medical expenses, which were deemed circumstances beyond his control.

Furthermore, the applicant demonstrated good-faith efforts to address his delinquent debts, having resolved many medical and non-medical obligations. The judge concluded that the applicant's current financial situation did not reflect poor self-control or a lack of judgment. Consequently, the security clearance was GRANTED.

Why the Applicant Prevailed

The applicant's financial difficulties were primarily due to uninsured medical expenses, a circumstance beyond his control.
He demonstrated good-faith efforts to repay delinquent debts, resolving many medical debts and settling non-medical debts.
The applicant's current financial situation does not indicate poor self-control or lack of judgment.

Conditions Referenced

Disqualifying

AG ¶ 18raisedFinancial Considerations
AG ¶ 19(a)raisedFinancial Considerations
AG ¶ 19(c)raisedFinancial Considerations

Mitigating

AG ¶ 20(b)appliedFinancial ConsiderationsThe conditions that resulted in the financial problems were largely beyond the applicant's control.
AG ¶ 20(d)appliedFinancial ConsiderationsThe applicant initiated a good-faith effort to repay overdue creditors.

Key Rule Quoted

“Failure or inability to live within one’s means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual’s reliability, trustworthiness, and ability to protect classified information.”

Procedural Posture

SOR issuedMar 2, 2010
Answer filed—
Hearing heldSep 15, 2010
Decision dateJan 21, 2011

Cite For

Mitigating Conditions Under Guideline F for Financial Considerations
Good-faith Efforts to Repay Debts as a Mitigating Factor
Impact of Medical Expenses on Financial Stability in Security Clearance 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	Applicant went through Chapter 7 bankruptcy proceedings in 2005, when he obtained a discharge of approximately $100,000 in liabilities. $100,000	For Applicant	Bankruptcy Filing	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts	Documented Chapter 7 Bankruptcy
1.b	Applicant paid or settled several medical debts.	For Applicant	Medical Debt	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	(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	Applicant paid or settled several medical debts.	For Applicant	Medical Debt	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	(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.d	Applicant paid or settled several medical debts.	For Applicant	Medical Debt	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	(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.e	Applicant is making regular payments on one medical account.	For Applicant	Medical Debt	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts	Documented Payment Plan with Creditor
1.p	The largest of the debts is a collection account for about $104,000 stemming from the period of hospitalization. $104,000	For Applicant	Medical Debt	Unknown	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—
1.dd	A $701 collection account is unresolved. $701	For Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant went through Chapter 7 bankruptcy proceedings in 2005, when he obtained a discharge of approximately $100,000 in liabilities.

$100,000

For Applicant

Bankruptcy Filing

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(b) conditions largely beyond the person’s control; acted responsibly

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

Documented

Chapter 7 Bankruptcy

1.b

Applicant paid or settled several medical debts.

For Applicant

Medical Debt

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(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

Applicant paid or settled several medical debts.

For Applicant

Medical Debt

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(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.d

Applicant paid or settled several medical debts.

For Applicant

Medical Debt

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(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.e

Applicant is making regular payments on one medical account.

For Applicant

Medical Debt

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(b) conditions largely beyond the person’s control; acted responsibly

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

Documented

Payment Plan with Creditor

1.p

The largest of the debts is a collection account for about $104,000 stemming from the period of hospitalization.

$104,000

For Applicant

Medical Debt

Unknown

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

—

1.dd

A $701 collection account is unresolved.

$701

For Applicant

Unspecified Financial

Unknown

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

—

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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

ANALYSIS

FORMAL FINDINGS

CONCLUSION

FOOTNOTES