ISCR Case 11-00901.h1

Case Headnote

ISCR Case No. 11-00901.h1

grantedMay 31, 2013· Hon. Rita C. O'Brien· hearing

Summary

A 44-year-old disabled veteran and former U.S. Army member was granted a security clearance despite concerns under Guideline F (Financial Considerations) and Guideline H (Drug Involvement). The applicant’s financial issues stemmed from a job-related injury and included multiple debts, such as duplicate automobile loan judgments from a 2007 voluntary repossession, medical debts, a mortgage, several cable accounts, a 2002 rent judgment, a 2009 cable equipment charge, a $205 parking fine, and a $7,852 retail account where she was a co-signer. Most of these debts were addressed through a Chapter 13 bankruptcy petition filed in 2007.

Specifically, one medical debt was paid via workman’s compensation, and the mortgage was discharged through bankruptcy with payments now made to a successor lender. Several cable accounts and the retail account were also discharged in bankruptcy. A 2002 rent judgment was paid before she purchased her home, and a 2009 cable equipment charge was disputed and later listed as paid. The $205 parking fine, however, appeared to remain unpaid.

Regarding drug involvement, the applicant admitted to using marijuana once or twice between December 2009 and January 2010. The judge found that the applicant had mitigated these concerns by successfully completing her Chapter 13 bankruptcy plan, demonstrating responsible financial management, and showing a clear intent to abstain from drug use, having not used marijuana for over three years. The security clearance was GRANTED.

Why the Applicant Prevailed

The applicant successfully completed a Chapter 13 bankruptcy plan, resolving most of her debts.
She demonstrated a clear intent to abstain from drug use, having not used marijuana since the incident over three years ago.
The applicant's financial issues were largely due to circumstances beyond her control, including a job-related injury.

Conditions Referenced

Disqualifying

AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
AG ¶ 25(a)raisedAny Drug Abuse

Mitigating

AG ¶ 20(b)appliedConditions Beyond the Person's Control
AG ¶ 20(c)appliedClear Indications That the Problem Is Being Resolved
AG ¶ 26(a)appliedBehavior Unlikely to Recur
AG ¶ 26(b)(3)appliedDemonstrated Intent Not to Abuse Drugs in the Future

Key Rule Quoted

“A security clearance decision is intended only to resolve the questions of whether it is clearly consistent with the national interest for an applicant to either receive or continue to have access to classified information.”
— Department of the Navy v. Egan, 484 U.S. 518 (1988)

Procedural Posture

SOR issuedMar 12, 2012
Answer filedAug 2, 2012
Hearing heldMay 2, 2013
Decision dateMay 31, 2013

Cite For

Mitigation of Financial Issues Under Guideline F Due to Responsible Actions
Demonstrated Intent to Abstain From Drug Use Under Guideline H
Consideration of Personal Circumstances Affecting Behavior and Financial Stability

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	specific text not stated in this decision	For Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved	—
1.b	Automobile loan. These two debts ($15,285 and $16,438) are owed to the same creditor and reflect judgments filed on the same date. Applicant testified that they are duplicates of the same debt, which stems from a deficiency balance on her car that was voluntarily repossessed in January 2007. The creditor filed suit. The debt was included in her Chapter 13 bankruptcy petition.	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 (c) received/receiving counseling; problem being resolved	—
1.c	Automobile loan. These two debts ($15,285 and $16,438) are owed to the same creditor and reflect judgments filed on the same date. Applicant testified that they are duplicates of the same debt, which stems from a deficiency balance on her car that was voluntarily repossessed in January 2007. The creditor filed suit. The debt was included in her Chapter 13 bankruptcy petition.	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 (c) received/receiving counseling; problem being resolved	—
1.d	Medical debts. Applicant sought payment of medical debts related to her injury through workman’s compensation insurance. Following a hearing, the court ordered one SOR debt (allegation 1.d: $2,975) to be paid through workman’s compensation. Applicant estimated it was paid in 2009, and it does not appear in her 2013 credit report. $2,975	For Applicant	Medical 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 (c) received/receiving counseling; problem being resolved	—
1.e	Medical debts. The other medical debt ($1,187) occurred after Applicant's bankruptcy was filed. She did not have the funds to pay it, and it appears as a collection account in her 2013 credit report. $1,187	For Applicant	Medical Debt	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved	—
1.f	Mortgage. Applicant filed her bankruptcy in part to save her home from foreclosure. The loan is included in her bankruptcy petition. The lender cited in the SOR sold the loan to another lender. The mortgage is listed in Applicant's 2013 credit report as discharged through bankruptcy. Applicant is now making her payments through the successor lender.	For Applicant	Mortgage or Home Loan Debt	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved	—
1.g	Cable accounts. These debts ($162, $127, and $105, respectively) relate to accounts with the same cable company. In her Answer, Applicant stated she has not had accounts with this company since before she filed the Chapter 13 bankruptcy petition in 2007, and that they were included in her bankruptcy. Applicant's 2013 credit report lists two accounts with this creditor. Both were discharged through her bankruptcy and show a zero balance.	For Applicant	Utility or Phone Debt	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved	—
1.h	Cable accounts. These debts ($162, $127, and $105, respectively) relate to accounts with the same cable company. In her Answer, Applicant stated she has not had accounts with this company since before she filed the Chapter 13 bankruptcy petition in 2007, and that they were included in her bankruptcy. Applicant's 2013 credit report lists two accounts with this creditor. Both were discharged through her bankruptcy and show a zero balance.	For Applicant	Utility or Phone Debt	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved	—
1.i	Cable accounts. These debts ($162, $127, and $105, respectively) relate to accounts with the same cable company. In her Answer, Applicant stated she has not had accounts with this company since before she filed the Chapter 13 bankruptcy petition in 2007, and that they were included in her bankruptcy. Applicant's 2013 credit report lists two accounts with this creditor. Both were discharged through her bankruptcy and show a zero balance.	For Applicant	Utility or Phone Debt	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved	—
1.j	Rent. Applicant's landlord filed a judgment against her in 2002 for $772. In her Answer, Applicant stated she paid this debt before she purchased her home in October 2002, because it was a “requirement of my loan.” The investigator did not raise this debt at her security interview, and it does not appear in her 2011, 2012, or 2013 credit reports. $772	For Applicant	Judgment Against Applicant	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved	—
1.k	Cable account. Applicant opened this account in 2009. In her Answer, she stated the charge is for cable equipment. However, she disputed the $530 charge with the credit agency because she returned the equipment to the company, as required. Her dispute appears in her 2013 credit report, which lists the account as paid. $530	For Applicant	Utility or Phone Debt	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved	—
1.l	Parking fine, $205. The original creditor is a city government. In her Answer, Applicant admitted this debt, which she ascribed to parking tickets, and stated that she intends to pay the debt. However, at the hearing, Applicant confused this debt with the cable debts listed at allegations 1.g, 1.h, and 1.i. It appears that the parking ticket remains unpaid. $205	For Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved	—
1.m	Retail account, $7,852. Applicant co-signed on a joint account with a friend in 2001. When the friend died, Applicant became liable for the balance. She could not maintain the payments, and included the account when she filed her Chapter 13 bankruptcy. The original creditor appears in Schedule F of Applicant’s petition, as well as the successor creditor. The account does not appear in her 2011, 2012, or 2013 credit reports. $7,852	For Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

specific text not stated in this decision

For Applicant

Unspecified Financial

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

(c) received/receiving counseling; problem being resolved

—

1.b

Automobile loan. These two debts ($15,285 and $16,438) are owed to the same creditor and reflect judgments filed on the same date. Applicant testified that they are duplicates of the same debt, which stems from a deficiency balance on her car that was voluntarily repossessed in January 2007. The creditor filed suit. The debt was included in her Chapter 13 bankruptcy petition.

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

(c) received/receiving counseling; problem being resolved

—

1.c

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

(c) received/receiving counseling; problem being resolved

—

1.d

Medical debts. Applicant sought payment of medical debts related to her injury through workman’s compensation insurance. Following a hearing, the court ordered one SOR debt (allegation 1.d: $2,975) to be paid through workman’s compensation. Applicant estimated it was paid in 2009, and it does not appear in her 2013 credit report.

$2,975

For Applicant

Medical 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

(c) received/receiving counseling; problem being resolved

—

1.e

Medical debts. The other medical debt ($1,187) occurred after Applicant's bankruptcy was filed. She did not have the funds to pay it, and it appears as a collection account in her 2013 credit report.

$1,187

For Applicant

Medical Debt

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

(c) received/receiving counseling; problem being resolved

—

1.f

Mortgage. Applicant filed her bankruptcy in part to save her home from foreclosure. The loan is included in her bankruptcy petition. The lender cited in the SOR sold the loan to another lender. The mortgage is listed in Applicant's 2013 credit report as discharged through bankruptcy. Applicant is now making her payments through the successor lender.

For Applicant

Mortgage or Home Loan Debt

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

(c) received/receiving counseling; problem being resolved

—

1.g

Cable accounts. These debts ($162, $127, and $105, respectively) relate to accounts with the same cable company. In her Answer, Applicant stated she has not had accounts with this company since before she filed the Chapter 13 bankruptcy petition in 2007, and that they were included in her bankruptcy. Applicant's 2013 credit report lists two accounts with this creditor. Both were discharged through her bankruptcy and show a zero balance.

For Applicant

Utility or Phone Debt

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

(c) received/receiving counseling; problem being resolved

—

1.h

For Applicant

Utility or Phone Debt

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

(c) received/receiving counseling; problem being resolved

—

1.i

For Applicant

Utility or Phone Debt

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

(c) received/receiving counseling; problem being resolved

—

1.j

Rent. Applicant's landlord filed a judgment against her in 2002 for $772. In her Answer, Applicant stated she paid this debt before she purchased her home in October 2002, because it was a “requirement of my loan.” The investigator did not raise this debt at her security interview, and it does not appear in her 2011, 2012, or 2013 credit reports.

$772

For Applicant

Judgment Against Applicant

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

(c) received/receiving counseling; problem being resolved

—

1.k

Cable account. Applicant opened this account in 2009. In her Answer, she stated the charge is for cable equipment. However, she disputed the $530 charge with the credit agency because she returned the equipment to the company, as required. Her dispute appears in her 2013 credit report, which lists the account as paid.

$530

For Applicant

Utility or Phone Debt

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

(c) received/receiving counseling; problem being resolved

—

1.l

Parking fine, $205. The original creditor is a city government. In her Answer, Applicant admitted this debt, which she ascribed to parking tickets, and stated that she intends to pay the debt. However, at the hearing, Applicant confused this debt with the cable debts listed at allegations 1.g, 1.h, and 1.i. It appears that the parking ticket remains unpaid.

$205

For Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

(c) received/receiving counseling; problem being resolved

—

1.m

Retail account, $7,852. Applicant co-signed on a joint account with a friend in 2001. When the friend died, Applicant became liable for the balance. She could not maintain the payments, and included the account when she filed her Chapter 13 bankruptcy. The original creditor appears in Schedule F of Applicant’s petition, as well as the successor creditor. The account does not appear in her 2011, 2012, or 2013 credit reports.

$7,852

For Applicant

Unspecified Financial

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

(c) received/receiving counseling; problem being resolved

—

¶	Allegation	Finding	Substance / event	Use level	Response	Disqualifying (¶25)	Mitigating applied (¶26)	Mitigation
2.a	Between December 2009 and January 2010, Applicant illegally used marijuana once or twice. She used it with friends, who offered to share a marijuana cigarette with her.	For Applicant	Marijuana	Occasional	Admitted	(a) any substance misuse	(a) behavior happened long ago / infrequent / unlikely to recur (b) acknowledges involvement; evidence of action; established abstinence	Documented Abstinence Period Documented Claimed Other

Allegation

Finding

Substance / event

Use level

Response

Disqualifying (¶25)

Mitigating applied (¶26)

Mitigation

2.a

Between December 2009 and January 2010, Applicant illegally used marijuana once or twice. She used it with friends, who offered to share a marijuana cigarette with her.

For Applicant

Marijuana

Occasional

Admitted

(a) any substance misuse

(a) behavior happened long ago / infrequent / unlikely to recur

(b) acknowledges involvement; evidence of action; established abstinence

Documented

Abstinence Period Documented

Claimed

Other

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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 ANALYSIS

FORMAL FINDINGS

CONCLUSION

FOOTNOTES