ISCR Case 10-10342.h1

Case Headnote

ISCR Case No. 10-10342.h1

grantedAug 31, 2011· Hon. Robert J. Tuidar· hearing

Summary

A 50-year-old field service representative and retired Army staff sergeant was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The Statement of Reasons (SOR) detailed five collection accounts. These included a $20,690 deficiency from a voluntarily repossessed car, a $378 collection account, a $55 collection account, a $9,841 deficiency from a second voluntarily repossessed car, and a $300 collection account.

The judge found that the applicant had made significant progress in resolving his debts. He provided proof of payment for the $378, $55, and $300 collection accounts. The applicant also demonstrated a stable financial situation, maintained a budget, and lived within his means.

The financial difficulties were largely attributed to circumstances beyond his control, specifically a divorce and subsequent underemployment. The judge concluded that the applicant had demonstrated responsible financial management, leading to the granting of his security clearance.

Why the Applicant Prevailed

The applicant demonstrated a stable financial situation and made substantial progress in resolving his debts.
He provided evidence of payments made on several debts and maintained a budget that allowed him to live within his means.
The applicant's financial difficulties were largely due to circumstances beyond his control, such as divorce and unemployment.

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

Key Rule Quoted

“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the adjudicative guidelines.”
— Executive Order 10865

Procedural Posture

SOR issuedApr 8, 2011
Answer filedApr 21, 2011Applicant elected to have the case decided on the written record.
Hearing held—No hearing; decided on the written record.
Decision dateAug 31, 2011

Cite For

Mitigation of Financial Issues Under Guideline F
Consideration of Circumstances Beyond the Applicant's Control in Financial Cases
Good-faith Efforts to Resolve Debts as a Mitigating Factor

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	Collection account in the amount of $20,690. This account represents a deficiency owed after Applicant’s car was voluntarily repossessed and sold at auction. $20,690	For Applicant	Auto Loan Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts	Claimed Other
1.b	Collection account in the amount of $378. Applicant’s SOR answer stated that he had paid this account in full. $378	For Applicant	Unspecified Financial	Denied	—	—	Documented Debt Paid in Full
1.c	Collection account in the amount of $55. Applicant provided proof of payment in his SOR answer. $55	For Applicant	Unspecified Financial	Denied	—	—	Documented Debt Paid in Full
1.d	Collection account in the amount of $9,841. This account represents a deficiency owed on a second car after it was voluntarily repossessed and then sold at auction. $9,841	For Applicant	Auto Loan Debt	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(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.e	Collection account in the amount of $300. Applicant provided proof of payment in his SOR answer. $300	For Applicant	Unspecified Financial	Denied	—	—	Documented Debt Paid in Full

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Collection account in the amount of $20,690. This account represents a deficiency owed after Applicant’s car was voluntarily repossessed and sold at auction.

$20,690

For Applicant

Auto Loan Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

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

Claimed

Other

1.b

Collection account in the amount of $378. Applicant’s SOR answer stated that he had paid this account in full.

$378

For Applicant

Unspecified Financial

Denied

—

Documented

Debt Paid in Full

1.c

Collection account in the amount of $55. Applicant provided proof of payment in his SOR answer.

$55

For Applicant

Unspecified Financial

Denied

—

Documented

Debt Paid in Full

1.d

Collection account in the amount of $9,841. This account represents a deficiency owed on a second car after it was voluntarily repossessed and then sold at auction.

$9,841

For Applicant

Auto Loan Debt

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(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.e

Collection account in the amount of $300. Applicant provided proof of payment in his SOR answer.

$300

For Applicant

Unspecified Financial

Denied

—

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