ISCR Case 10-00462.h1

Case Headnote

ISCR Case No. 10-00462.h1

grantedJun 20, 2011· Hon. David M. White· hearing

Summary

A 45-year-old defense contractor and former Army sergeant was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The applicant's financial difficulties stemmed from a work-related injury that prevented him from working for two and a half years, leading to accumulated debts.

The Statement of Reasons detailed several outstanding debts. The applicant and his wife entered repayment agreements for multiple debts, with monthly payments ranging from $25 to $51.45, beginning between February and October 2010. One specific debt, initially disputed through Lexington Law, was later verified and is being paid at $25 per month. Another significant debt, representing two-thirds of the total alleged delinquent amount, remains disputed by the applicant.

The judge found significant mitigation, noting the applicant's responsible actions and current financial stability. The clearance was granted because the financial difficulties were primarily caused by an uncontrollable work-related injury, the applicant demonstrated a commitment to resolving his obligations through repayment agreements, and his current financial situation shows stability and a reasonable plan for debt resolution.

Why the Applicant Prevailed

The applicant demonstrated a commitment to resolving his financial obligations through repayment agreements.
The financial difficulties were primarily caused by a work-related injury, which was beyond the applicant's control.
The applicant's current financial situation shows stability and a reasonable plan for debt resolution.

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)appliedThe Conditions 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
AG ¶ 20(e)appliedThe Individual Has a Reasonable 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 issuedJul 15, 2010
Answer filedAug 7, 2010
Hearing heldJan 28, 2011
Decision dateJun 20, 2011

Cite For

Mitigation of Financial Issues Under Guideline F Due to Circumstances Beyond the Applicant's Control
Significant Actions Taken to Resolve Debts
The Importance of a Stable Financial Situation in Security Clearance Determinations

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 and his wife have concluded repayment agreements with the creditors for the debts alleged in SOR ¶ 1.a for monthly payments of $50, starting in October 2010. $50	For Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.b	Applicant and his wife have concluded repayment agreements with the creditors for the debts alleged in SOR ¶ 1.b for monthly payments of $30, starting in February 2010. $30	For Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.c	The debt alleged in both SOR ¶¶ 1.c and 1.g was originally disputed through Lexington Law, a firm they hired to help resolve their debts. It has since been verified, and is being paid at $25 per month. $25	For Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.d	Applicant and his wife entered a repayment plan for the debt alleged in SOR ¶ 1.d in September 2010, permitting the collection agency to withdraw $50 per month from their bank account. $50	For Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.e	The debt that is listed twice in SOR ¶¶ 1.e and 1.i is being repaid, under an agreement reached in August 2010, at the rate of $51.45 per month that is electronically debited by the creditor. $51	For Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.f	The debts alleged in SOR ¶¶ 1.f and 1.j are being repaid by monthly payments of $25 and $50 respectively. $25	For Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.g	The debts alleged in SOR ¶¶ 1.c and 1.g are duplicate listings of the same original debt by two different creditors.	For Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.h	The debt alleged in SOR ¶ 1.h, which involves two-thirds of the total delinquent debt alleged in the SOR, is disputed by the applicant. $16,391	For Applicant	Unspecified Financial	Denied with Explanation	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(e) reasonable, documented basis to dispute the debt	Documented Debt Disputed with Creditor
1.i	The debts alleged in SOR ¶¶ 1.e and 1.i are duplicate listings of the same original debt by two different creditors.	For Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.j	The debts alleged in SOR ¶¶ 1.f and 1.j are being repaid by monthly payments of $25 and $50 respectively. $50	For Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant and his wife have concluded repayment agreements with the creditors for the debts alleged in SOR ¶ 1.a for monthly payments of $50, starting in October 2010.

$50

For Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

Documented

Debt Paid in Full

1.b

Applicant and his wife have concluded repayment agreements with the creditors for the debts alleged in SOR ¶ 1.b for monthly payments of $30, starting in February 2010.

$30

For Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

Documented

Debt Paid in Full

1.c

The debt alleged in both SOR ¶¶ 1.c and 1.g was originally disputed through Lexington Law, a firm they hired to help resolve their debts. It has since been verified, and is being paid at $25 per month.

$25

For Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

Documented

Debt Paid in Full

1.d

Applicant and his wife entered a repayment plan for the debt alleged in SOR ¶ 1.d in September 2010, permitting the collection agency to withdraw $50 per month from their bank account.

$50

For Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

Documented

Debt Paid in Full

1.e

The debt that is listed twice in SOR ¶¶ 1.e and 1.i is being repaid, under an agreement reached in August 2010, at the rate of $51.45 per month that is electronically debited by the creditor.

$51

For Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

Documented

Debt Paid in Full

1.f

The debts alleged in SOR ¶¶ 1.f and 1.j are being repaid by monthly payments of $25 and $50 respectively.

$25

For Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

Documented

Debt Paid in Full

1.g

The debts alleged in SOR ¶¶ 1.c and 1.g are duplicate listings of the same original debt by two different creditors.

For Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

Documented

Debt Paid in Full

1.h

The debt alleged in SOR ¶ 1.h, which involves two-thirds of the total delinquent debt alleged in the SOR, is disputed by the applicant.

$16,391

For Applicant

Unspecified Financial

Denied with Explanation

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(e) reasonable, documented basis to dispute the debt

Documented

Debt Disputed with Creditor

1.i

The debts alleged in SOR ¶¶ 1.e and 1.i are duplicate listings of the same original debt by two different creditors.

For Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

Documented

Debt Paid in Full

1.j

The debts alleged in SOR ¶¶ 1.f and 1.j are being repaid by monthly payments of $25 and $50 respectively.

$50

For Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

Documented

Debt Paid in Full

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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