ISCR Case 10-01820.h1

Case Headnote

ISCR Case No. 10-01820.h1

grantedMar 12, 2013· Hon. Paul J. Mason· hearing

Summary

A 34-year-old systems technician was granted a security clearance despite initial concerns under Guideline F (Financial Considerations) regarding $29,072 in outstanding debts. The Statement of Reasons (SOR) detailed eight specific financial allegations. Six of these were medical debts, one was a student loan judgment, and one was a telecommunications account. The applicant's financial difficulties were attributed to a history of medical issues and periods of unemployment or underemployment.

After receiving the SOR, the applicant actively worked to resolve his financial issues. He successfully paid off six of the eight debts, including medical debts ranging from $28 to $11,436, and a telecommunications account. The largest medical debt was partially settled using funds from a car accident settlement. For the $15,952 student loan judgment, a payment plan was established, beginning with a $5,000 payment and followed by monthly installments. One medical debt of $249 remained unresolved as the applicant was unable to identify the account after extensive efforts.

The decision to grant the clearance was based on the applicant's demonstrated good-faith effort to resolve his debts, paying off six of eight accounts and establishing a payment plan for another. His financial difficulties were largely considered to be due to circumstances beyond his control, such as medical issues and unemployment. Furthermore, his continuous employment since September 2007 indicated financial stability.

Why the Applicant Prevailed

The applicant demonstrated a good-faith effort to resolve his debts by paying off six of eight accounts.
His financial difficulties were largely due to medical issues and unemployment, which were beyond his control.
The applicant has maintained continuous employment since September 2007, indicating stability.

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

Key Rule Quoted

“The ultimate determination of whether to grant eligibility for a security clearance must be a commonsense judgment based on careful consideration of the guidelines and the whole-person concept.”

Procedural Posture

SOR issuedNov 2, 2012
Answer filedNov 25, 2012Notarized
Hearing heldFeb 14, 2013
Decision dateMar 12, 2013

Cite For

Mitigation of Financial Issues Due to Medical Circumstances
Good-faith Efforts to Resolve Debts Under Guideline F
Consideration of Whole-person Factors 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	Resolved. Medical debt ($501) for services rendered during Applicant’s four-day hospitalization in May 2006. On February 13, 2013, the creditor’s collection agency notified Applicant that the delinquent account was paid in full. $501	For Applicant	Medical Debt	Admitted	—	—	—
1.b	Resolved. Medical debt ($224) for services rendered in May 2006. On December 18, 2012, the creditor’s collection agency notified Applicant that the account was paid in full on November 27, 2012. $224	For Applicant	Medical Debt	Admitted	—	—	—
1.c	Resolved. Medical debt ($28) for services rendered in May 2006. On December 18, 2012, the creditor’s collection agency notified Applicant that the account was satisfied on November 26, 2012. $28	For Applicant	Medical Debt	Admitted	—	—	—
1.d	Payment plan. Student loan judgment ($15,952). The judgment was filed in January 2005. Applicant’s underemployment, unemployment, and medical issues, were major reasons why a judgment was filed against him. On February 6, 2013, the student loan organization notified Applicant that his $5,000 payment constituted acceptance of a payment plan of $150 a month beginning on March 15, 2013. $15,952	For Applicant	Judgment Against Applicant	Admitted	—	—	—
1.e	Resolved. Medical debt ($417) for services at an unknown time. The account became delinquent in March 2007. On February 7, 2013, the creditor’s collection agency notified Applicant that the account was paid in full. $417	For Applicant	Medical Debt	Admitted	—	—	—
1.f	Unresolved. Medical debt ($249) for services at an unknown time. After obtaining a copy of his credit report, contacting a debt firm, searching the Internet, and telephoning other sources, Applicant was unable to identify the medical account. $249	For Applicant	Medical Debt	Admitted	—	—	—
1.g	Resolved. Telecommunications account ($265) opened in 2002 with an unknown date of becoming delinquent. On December 12, 2012, Applicant was notified by letter that the account was settled. $265	For Applicant	Utility or Phone Debt	Admitted	—	—	—
1.h	Resolved. Medical account ($11,436) for hospitalization of four days in May 2006. Applicant paid a portion of this debt with a settlement check ($9,308) he received on January 13, 2013, from the party who collided with Applicant’s car in January 2012, and left the scene of the accident before the police arrived. $11,436	For Applicant	Medical Debt	Admitted	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Resolved. Medical debt ($501) for services rendered during Applicant’s four-day hospitalization in May 2006. On February 13, 2013, the creditor’s collection agency notified Applicant that the delinquent account was paid in full.

$501

For Applicant

Medical Debt

Admitted

—

1.b

Resolved. Medical debt ($224) for services rendered in May 2006. On December 18, 2012, the creditor’s collection agency notified Applicant that the account was paid in full on November 27, 2012.

$224

For Applicant

Medical Debt

Admitted

—

1.c

Resolved. Medical debt ($28) for services rendered in May 2006. On December 18, 2012, the creditor’s collection agency notified Applicant that the account was satisfied on November 26, 2012.

$28

For Applicant

Medical Debt

Admitted

—

1.d

Payment plan. Student loan judgment ($15,952). The judgment was filed in January 2005. Applicant’s underemployment, unemployment, and medical issues, were major reasons why a judgment was filed against him. On February 6, 2013, the student loan organization notified Applicant that his $5,000 payment constituted acceptance of a payment plan of $150 a month beginning on March 15, 2013.

$15,952

For Applicant

Judgment Against Applicant

Admitted

—

1.e

Resolved. Medical debt ($417) for services at an unknown time. The account became delinquent in March 2007. On February 7, 2013, the creditor’s collection agency notified Applicant that the account was paid in full.

$417

For Applicant

Medical Debt

Admitted

—

1.f

Unresolved. Medical debt ($249) for services at an unknown time. After obtaining a copy of his credit report, contacting a debt firm, searching the Internet, and telephoning other sources, Applicant was unable to identify the medical account.

$249

For Applicant

Medical Debt

Admitted

—

1.g

Resolved. Telecommunications account ($265) opened in 2002 with an unknown date of becoming delinquent. On December 12, 2012, Applicant was notified by letter that the account was settled.

$265

For Applicant

Utility or Phone Debt

Admitted

—

1.h

Resolved. Medical account ($11,436) for hospitalization of four days in May 2006. Applicant paid a portion of this debt with a settlement check ($9,308) he received on January 13, 2013, from the party who collided with Applicant’s car in January 2012, and left the scene of the accident before the police arrived.

$11,436

For Applicant

Medical Debt

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