ISCR Case 10-07711.h1

Case Headnote

ISCR Case No. 10-07711.h1

grantedJul 1, 2011· Hon. Jennifer I. Goldstein· hearing

Summary

A 42-year-old defense contractor employee was granted a security clearance despite concerns under Guideline F (Financial Considerations). The applicant faced allegations of approximately $88,494 in total indebtedness, which included a dismissed Chapter 13 bankruptcy and two foreclosures. Specific debts included $162 to a cable company collection agent, $6,411 to a credit union on a charged-off account, $95 to another credit union, and $296 and $428 for medical accounts. Additionally, the applicant was indebted on first and second mortgages for foreclosed properties, with unknown amounts, and disputed an unknown debt to another creditor.

The judge determined that the applicant's financial issues stemmed largely from unforeseen circumstances, specifically medical leave and divorce. Disqualifying conditions under Adjudicative Guidelines (AG) ¶ 19(a) and AG ¶ 19(c) were raised.

However, mitigating conditions under AG ¶ 20(b), AG ¶ 20(d), and AG ¶ 20(e) were applied. The applicant demonstrated a responsible approach by actively working to resolve her debts after securing a higher-paying job, satisfying several delinquent debts, and establishing payment arrangements for others. Based on these mitigating factors, eligibility for a security clearance was granted.

Why the Applicant Prevailed

The applicant's financial difficulties were caused by unforeseen circumstances beyond her control.
She demonstrated a responsible approach by actively working to resolve her debts after obtaining a higher-paying job.
The applicant satisfied several delinquent debts and made payment arrangements for others.

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(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's 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

“. . . an applicant is not required to be debt-free nor to develop a plan for paying off all debts immediately or simultaneously.”
— ISCR Case No. 08-06567 at 3 (App. Bd. Dec. October 29, 2009)

Procedural Posture

SOR issuedJan 17, 2011
Answer filedFeb 10, 2011
Hearing heldApr 27, 2011
Decision dateJul 1, 2011

Cite For

Mitigation of Financial Issues Due to Unforeseen Circumstances
Good-faith Efforts to Resolve Debts Under Guideline F
Responsible Financial Conduct Despite Past Difficulties

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	indebted to a collection agent for a cable company in the approximate amount of $162 $162	For Applicant	Utility or Phone Debt	Admitted	—	(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.b	indebted to a creditor for an unknown amount, disputed by the applicant	For Applicant	Unspecified Financial	Denied	—	(e) reasonable, documented basis to dispute the debt	Claimed Debt Disputed with Creditor
1.c	indebted to a credit union on a charged off account in the approximate amount of $6,411 $6,411	For Applicant	Unspecified Financial	Admitted	—	(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.d	indebted to a credit union in the approximate amount of $95 $95	For Applicant	Unspecified Financial	Admitted	—	(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	indebted on a second mortgage for a property that was foreclosed upon, amount unknown, disputed by the applicant	For Applicant	Unspecified Financial	Denied	—	(e) reasonable, documented basis to dispute the debt	Claimed Debt Disputed with Creditor
1.f	indebted on a medical account in the approximate amount of $296 $296	For Applicant	Medical Debt	Admitted	—	(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.g	indebted on another medical account in the approximate amount of $428 $428	For Applicant	Medical Debt	Admitted	—	(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.h	specific text not stated in this decision	For Applicant	Unspecified Financial	Unknown	—	—	—
1.i	indebted on a first mortgage for a property that was foreclosed upon, amount unknown (low confidence)	For Applicant	Unspecified Financial	Unknown	—	—	—
1.j	indebted on a first mortgage for a property that was foreclosed upon, amount unknown (low confidence)	For Applicant	Unspecified Financial	Unknown	—	—	—
1.k	indebted on a second mortgage for a property that was foreclosed upon, amount unknown (low confidence)	For Applicant	Unspecified Financial	Unknown	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

indebted to a collection agent for a cable company in the approximate amount of $162

$162

For Applicant

Utility or Phone Debt

Admitted

—

(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.b

indebted to a creditor for an unknown amount, disputed by the applicant

For Applicant

Unspecified Financial

Denied

—

(e) reasonable, documented basis to dispute the debt

Claimed

Debt Disputed with Creditor

1.c

indebted to a credit union on a charged off account in the approximate amount of $6,411

$6,411

For Applicant

Unspecified Financial

Admitted

—

(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.d

indebted to a credit union in the approximate amount of $95

$95

For Applicant

Unspecified Financial

Admitted

—

(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

indebted on a second mortgage for a property that was foreclosed upon, amount unknown, disputed by the applicant

For Applicant

Unspecified Financial

Denied

—

(e) reasonable, documented basis to dispute the debt

Claimed

Debt Disputed with Creditor

1.f

indebted on a medical account in the approximate amount of $296

$296

For Applicant

Medical Debt

Admitted

—

(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.g

indebted on another medical account in the approximate amount of $428

$428

For Applicant

Medical Debt

Admitted

—

(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.h

specific text not stated in this decision

For Applicant

Unspecified Financial

Unknown

—

1.i

indebted on a first mortgage for a property that was foreclosed upon, amount unknown (low confidence)

For Applicant

Unspecified Financial

Unknown

—

1.j

indebted on a first mortgage for a property that was foreclosed upon, amount unknown (low confidence)

For Applicant

Unspecified Financial

Unknown

—

1.k

indebted on a second mortgage for a property that was foreclosed upon, amount unknown (low confidence)

For Applicant

Unspecified Financial

Unknown

—

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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