ISCR Case 10-06166.h1

Case Headnote

ISCR Case No. 10-06166.h1

grantedMar 15, 2013· Hon. Jennifer I. Goldstein· hearing

Summary

A 59-year-old government contractor was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The Statement of Reasons (SOR) alleged eight delinquent debts totaling $273,991. These included a $142 medical account from 2005, a $226 collection account delinquent in July 2008, and a $9,033 collection account settled for $1,500 in December 2009. Other debts included a $1,000 charged-off account settled for $275 in February 2011, and three collection accounts from 2005 for $435, $652, and $503 respectively. The most significant debt was a $262,000 delinquent home mortgage, which appeared resolved through a property sale four years prior.

The applicant successfully mitigated these concerns by demonstrating a pattern of responsible financial behavior. All seven consumer debts were satisfied before the hearing, and the applicant credibly testified that the medical debt was paid. The applicant also showed sufficient savings to cover any potential deficiency from the foreclosed mortgage.

The judge found that the applicant’s current financial stability, responsible actions to resolve past issues, and participation in financial counseling warranted a favorable decision. Consequently, the security clearance was granted.

Why the Applicant Prevailed

All seven consumer debts were satisfied by the applicant prior to the hearing.
The applicant has sufficient savings to cover any potential deficiency from the foreclosed mortgage.
The applicant demonstrated responsible financial behavior and received financial counseling.

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
AG ¶ 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts

Key Rule Quoted

“A security clearance adjudication is not a debt collection procedure. It is a process designed to evaluate an applicant’s judgment, reliability, and trustworthiness.”

Procedural Posture

SOR issuedJul 5, 2012
Answer filedAug 3, 2012
Hearing heldFeb 26, 2013
Decision dateMar 15, 2013

Cite For

Mitigation of Financial Issues Under Guideline F
Demonstrating Responsible Financial Behavior
Impact of Personal Circumstances on Financial Obligations

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 was indebted on a medical account in the amount of $142 (as alleged in SOR ¶ 1.a). This debt was incurred in 2005. Applicant credibly testified that this debt is now paid. This debt no longer appears on Applicant’s February 2013 credit report. This debt is satisfied. $142	For Applicant	Medical Debt	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.b	Applicant was indebted on a collection account in the amount of $226 (as alleged in SOR ¶ 1.b). This debt became delinquent in July 2008. This debt is satisfied. $226	For Applicant	Unspecified Financial	Denied	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.c	Applicant was indebted on a collection account in the amount of $9,033 (as alleged in SOR ¶ 1.c). Applicant settled this debt on December 3, 2009 for $1,500. This debt is satisfied. $9,033	For Applicant	Unspecified Financial	Denied	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.d	Applicant was indebted on a charged-off account in the amount of $1,000 (as alleged in SOR ¶ 1.d). Applicant received a settlement offer from the creditor to settle this debt for a payment of $275, which he paid by phone on February 14, 2011. This debt is satisfied. $1,000	For Applicant	Unspecified Financial	Denied	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.e	Applicant was indebted on a collection account in the amount of $435 (as alleged in SOR ¶ 1.e). Applicant incurred this debt in 2005. This debt is satisfied. $435	For Applicant	Unspecified Financial	Denied	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.f	Applicant was indebted on a collection account in the amount of $652 (as alleged in SOR ¶ 1.f). This debt was incurred in 2005. This debt is satisfied. $652	For Applicant	Unspecified Financial	Denied	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.g	Applicant was indebted on a delinquent home mortgage in the amount of $262,000 (as alleged in SOR ¶ 1.g). The status of the first mortgage on his foreclosed home is unclear, but it appears that it has been resolved through the sale of the property that occurred four years ago. This debt is satisfied. $262,000	For Applicant	Mortgage or Home Loan Debt	Denied	—	—	Claimed Other
1.h	Applicant was indebted on a collection account in the amount of $503 (as alleged in SOR ¶ 1.h). This debt was incurred in 2005. This debt is satisfied. $503	For Applicant	Unspecified Financial	Denied	—	(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 was indebted on a medical account in the amount of $142 (as alleged in SOR ¶ 1.a). This debt was incurred in 2005. Applicant credibly testified that this debt is now paid. This debt no longer appears on Applicant’s February 2013 credit report. This debt is satisfied.

$142

For Applicant

Medical Debt

Admitted

—

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

Documented

Debt Paid in Full

1.b

Applicant was indebted on a collection account in the amount of $226 (as alleged in SOR ¶ 1.b). This debt became delinquent in July 2008. This debt is satisfied.

$226

For Applicant

Unspecified Financial

Denied

—

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

Documented

Debt Paid in Full

1.c

Applicant was indebted on a collection account in the amount of $9,033 (as alleged in SOR ¶ 1.c). Applicant settled this debt on December 3, 2009 for $1,500. This debt is satisfied.

$9,033

For Applicant

Unspecified Financial

Denied

—

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

Documented

Debt Paid in Full

1.d

Applicant was indebted on a charged-off account in the amount of $1,000 (as alleged in SOR ¶ 1.d). Applicant received a settlement offer from the creditor to settle this debt for a payment of $275, which he paid by phone on February 14, 2011. This debt is satisfied.

$1,000

For Applicant

Unspecified Financial

Denied

—

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

Documented

Debt Paid in Full

1.e

Applicant was indebted on a collection account in the amount of $435 (as alleged in SOR ¶ 1.e). Applicant incurred this debt in 2005. This debt is satisfied.

$435

For Applicant

Unspecified Financial

Denied

—

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

Documented

Debt Paid in Full

1.f

Applicant was indebted on a collection account in the amount of $652 (as alleged in SOR ¶ 1.f). This debt was incurred in 2005. This debt is satisfied.

$652

For Applicant

Unspecified Financial

Denied

—

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

Documented

Debt Paid in Full

1.g

Applicant was indebted on a delinquent home mortgage in the amount of $262,000 (as alleged in SOR ¶ 1.g). The status of the first mortgage on his foreclosed home is unclear, but it appears that it has been resolved through the sale of the property that occurred four years ago. This debt is satisfied.

$262,000

For Applicant

Mortgage or Home Loan Debt

Denied

—

Claimed

Other

1.h

Applicant was indebted on a collection account in the amount of $503 (as alleged in SOR ¶ 1.h). This debt was incurred in 2005. This debt is satisfied.

$503

For Applicant

Unspecified Financial

Denied

—

(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