ISCR Case 09-07069.h1

Case Headnote

ISCR Case No. 09-07069.h1

grantedMay 9, 2011· Hon. Noreen A. Lynch· hearing

Summary

A 36-year-old Army National Guard employee was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The Statement of Reasons (SOR) detailed a history of financial difficulties, including approximately $15,000 in delinquent debts and two bankruptcies. Specifically, the applicant filed for Chapter 7 bankruptcy in April 2000, discharged in July 2000, and Chapter 13 bankruptcy in January 2005, which was dismissed in June 2006 after payments ceased. The SOR listed eight delinquent accounts totaling about $15,000.

However, the applicant successfully demonstrated significant mitigating factors. She had paid accounts totaling $575 and an additional $8,000, and was on a payment plan for other debts, including one settled for $3,700 through three payments. Her financial issues were largely attributed to circumstances beyond her control, such as her daughter's severe medical condition and a divorce.

The judge found that the applicant had made substantial efforts to resolve her financial issues, showing no new delinquencies in the past three years. Given the demonstrated improvement in her financial situation and the external factors contributing to her past difficulties, the security clearance was granted.

Why the Applicant Prevailed

The applicant demonstrated a significant improvement in her financial situation, with no delinquencies in the past three years.
She provided evidence of payments made towards delinquent accounts and was in a payment plan for remaining debts.
The applicant's financial difficulties were largely due to circumstances beyond her control, including medical emergencies and divorce.

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)appliedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
AG ¶ 20(b)appliedConditions That Resulted in the Behavior Were Largely Beyond the Person’s Control
AG ¶ 20(c)appliedThe Person Has Received or Is Receiving Counseling for the Problem
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 issuedDec 3, 2010
Answer filed—
Hearing heldApr 1, 2011
Decision dateMay 9, 2011

Cite For

Mitigating Conditions Under Guideline F Due to Circumstances Beyond Control
Evidence of Good-faith Efforts to Resolve Financial Issues
Whole-person Concept Applied in Financial Considerations 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 had numerous delinquent debts in the approximate amount of $15,000 for a number of years. $15,000	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(a) behavior happened long ago / infrequent / unlikely to recur (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 Documented Financial Counseling Documented Budget Change with Documentation
1.b	Applicant filed for Chapter 7 Bankruptcy in April 2000, which was discharged in July 2000.	For Applicant	Bankruptcy Filing	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(a) behavior happened long ago / infrequent / unlikely to recur (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.c	Applicant filed for Chapter 13 bankruptcy in January 2005, but stopped the payments in June 2006. The bankruptcy was dismissed.	For Applicant	Bankruptcy Filing	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(a) behavior happened long ago / infrequent / unlikely to recur (b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts	Documented Chapter 13 Bankruptcy
1.d	The SOR lists eight delinquent accounts totaling approximately $15,000. $15,000	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(a) behavior happened long ago / infrequent / unlikely to recur (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 Documented Financial Counseling Documented Budget Change with Documentation
1.e	Applicant has paid the accounts in SOR ¶ 1.c through 1.e, which totaled $575; $575	For Applicant	Unspecified Financial	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.f	Applicant has two accounts in a payment plan for SOR ¶ 1.f and 1.j. The payment plan for SOR ¶ 1.f consisted of three payments to settle the account for $3,700. $3,700	For Applicant	Unspecified Financial	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Payment Plan with Creditor
1.g	specific text not stated in this decision	For Applicant	Unspecified Financial	Unknown	—	—	—
1.h	Applicant has paid the accounts in SOR ¶ 1.h and ¶ 1.i. for a total of $8,000. $8,000	For Applicant	Unspecified Financial	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.i–1.j	2 sub-charges — specific text not stated in this decision (for the applicant). (low confidence)	For Applicant			—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant had numerous delinquent debts in the approximate amount of $15,000 for a number of years.

$15,000

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(a) behavior happened long ago / infrequent / unlikely to recur

(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

Documented

Financial Counseling

Documented

Budget Change with Documentation

1.b

Applicant filed for Chapter 7 Bankruptcy in April 2000, which was discharged in July 2000.

For Applicant

Bankruptcy Filing

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(a) behavior happened long ago / infrequent / unlikely to recur

(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.c

Applicant filed for Chapter 13 bankruptcy in January 2005, but stopped the payments in June 2006. The bankruptcy was dismissed.

For Applicant

Bankruptcy Filing

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(a) behavior happened long ago / infrequent / unlikely to recur

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

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

Documented

Chapter 13 Bankruptcy

1.d

The SOR lists eight delinquent accounts totaling approximately $15,000.

$15,000

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(a) behavior happened long ago / infrequent / unlikely to recur

(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

Documented

Financial Counseling

Documented

Budget Change with Documentation

1.e

Applicant has paid the accounts in SOR ¶ 1.c through 1.e, which totaled $575;

$575

For Applicant

Unspecified Financial

Admitted

—

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

Documented

Debt Paid in Full

1.f

Applicant has two accounts in a payment plan for SOR ¶ 1.f and 1.j. The payment plan for SOR ¶ 1.f consisted of three payments to settle the account for $3,700.

$3,700

For Applicant

Unspecified Financial

Admitted

—

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

Documented

Payment Plan with Creditor

1.g

specific text not stated in this decision

For Applicant

Unspecified Financial

Unknown

—

1.h

Applicant has paid the accounts in SOR ¶ 1.h and ¶ 1.i. for a total of $8,000.

$8,000

For Applicant

Unspecified Financial

Admitted

—

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

Documented

Debt Paid in Full

1.i–1.j

2 sub-charges — specific text not stated in this decision (for the applicant). (low confidence)

For Applicant

—

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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