ISCR Case 11-11977.h1

Case Headnote

ISCR Case No. 11-11977.h1

grantedJun 6, 2013· Hon. Rita C. O'Brien· hearing

Summary

A 56-year-old engineering designer was granted a security clearance despite concerns under Guideline F (Financial Considerations). The applicant's financial difficulties stemmed from supporting his family, including an adult daughter and four grandchildren, exacerbated by his wife's job loss and reduced overtime.

The Statement of Reasons detailed several debts, including a credit card judgment of $2,717, on which the applicant had been paying $50 monthly since January 2010, reducing it to $1,698 by December 2012. A significant judgment of $9,537, which led to a $15,547 garnishment, was satisfied by October 18, 2012. Other debts included three medical bills totaling $602, with one $95 debt included in bankruptcy. Additionally, $14,715 in retail credit card debt, a $2,238 gasoline card balance, a $2,432 bank credit card balance, and a $185 landline bill were all included in his bankruptcy petition.

The clearance was granted because the applicant's financial issues were largely due to circumstances beyond his control. He demonstrated responsible behavior by making consistent payments on several debts, resolving many, and seeking professional financial counseling, ultimately filing for bankruptcy to address his obligations.

Why the Applicant Prevailed

The applicant's financial difficulties were primarily due to circumstances beyond his control, including his wife's job loss and reduced overtime work.
He has made consistent payments on several debts and has resolved many of them, demonstrating responsible financial behavior.
The applicant sought professional financial counseling and filed for bankruptcy as a means to address his debts.

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)appliedBehavior Happened Long Ago or Under Circumstances Unlikely to Recur
AG ¶ 20(b)appliedConditions Beyond the Person's Control Contributed to Financial Problems
AG ¶ 20(c)appliedThe Person Has Received Counseling and Is Taking Steps to Resolve the Problem

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 issuedDec 12, 2012
Answer filedJan 17, 2013Notarized
Hearing heldApr 30, 2013
Decision dateJun 6, 2013

Cite For

Mitigation of Financial Concerns Under Guideline F Due to Circumstances Beyond Control
Responsible Financial Behavior Despite Significant Family Obligations
Impact of Professional Financial Counseling on Security Clearance Outcomes

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 provided documentation that he has been paying $50 per month on this credit card debt of $2,717 since January 2010, when the judgment was filed. As of December 2012, the debt had been reduced to $1,698. $1,698	For Applicant	Credit Card 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	Documented Debt Paid in Full
1.b	$9,537, judgment; $15,547, garnishment - SATISFIED. Applicant opened a personal loan account in 2006. The creditor filed for a judgment in 2008. Applicant stated in his Answer and his testimony that he had been paying regularly to this creditor since 2008. An attorney for the creditor was handling Applicant's payments at the creditor’s local office. However, in 2010, Applicant learned that the creditor filed a request for garnishment of Applicant's pay. He contacted the attorney, who verified that he had been paying, and attempted to stop the garnishment. However, he was told the processing had been completed and the garnishment would remain in place. The record evidence supports Applicant's claim that allegation 1.b and 1.p refer to the same debt. Department Counsel provided a Judgment Creditor’s Monthly Report showing the garnishment was composed of the judgment principal of $9,527, plus added interest, attorney’s fees, and court costs, for a total of approximately $14,500. Applicant provided evidence that the debt was satisfied on October 18, 2012. His 2013 credit report does not list the judgment. $0	For Applicant	Personal 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	Documented Debt Paid in Full
1.c	specific text not stated in this decision	For Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.d	The three medical debts in the SOR total $602. Two debts for $412 and $95 (allegations 1.d and 1.n) are not in Applicant's bankruptcy paperwork. The remaining debt of $95 (allegation 1.e) is included in Applicant's bankruptcy. $602	For Applicant	Medical Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.e	specific text not stated in this decision $95	For Applicant	Medical Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.f	These debts relate to credit cards for retail purchases. They total $14,715, and appear in Applicant’s bankruptcy petition. $14,715	For Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.g–1.i	3 sub-charges — specific text not stated in this decision (for the applicant).	For Applicant			—	—	—
1.j	Allegation 1.j relates to a gasoline company card with a balance of $2,238. Allegation 1.l is a bank credit card with a balance of $2,432. Both debts are included in Applicant's bankruptcy petition. $2,238	For Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.k–1.n	4 sub-charges — specific text not stated in this decision (for the applicant).	For Applicant			—	—	—
1.o	This $185 bill is for a land line. In order to cut back on expenses, Applicant instructed the company to change to a minimal plan by eliminating his outgoing land-line calls. The company continued to charge him for full land-line service. The debt is included in Applicant's bankruptcy paperwork. $185	For Applicant	Utility or Phone Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.p	specific text not stated in this decision	For Applicant	Personal Loan Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant provided documentation that he has been paying $50 per month on this credit card debt of $2,717 since January 2010, when the judgment was filed. As of December 2012, the debt had been reduced to $1,698.

$1,698

For Applicant

Credit Card 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

Documented

Debt Paid in Full

1.b

$9,537, judgment; $15,547, garnishment - SATISFIED. Applicant opened a personal loan account in 2006. The creditor filed for a judgment in 2008. Applicant stated in his Answer and his testimony that he had been paying regularly to this creditor since 2008. An attorney for the creditor was handling Applicant's payments at the creditor’s local office. However, in 2010, Applicant learned that the creditor filed a request for garnishment of Applicant's pay. He contacted the attorney, who verified that he had been paying, and attempted to stop the garnishment. However, he was told the processing had been completed and the garnishment would remain in place. The record evidence supports Applicant's claim that allegation 1.b and 1.p refer to the same debt. Department Counsel provided a Judgment Creditor’s Monthly Report showing the garnishment was composed of the judgment principal of $9,527, plus added interest, attorney’s fees, and court costs, for a total of approximately $14,500. Applicant provided evidence that the debt was satisfied on October 18, 2012. His 2013 credit report does not list the judgment.

For Applicant

Personal 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

Documented

Debt Paid in Full

1.c

specific text not stated in this decision

For Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.d

The three medical debts in the SOR total $602. Two debts for $412 and $95 (allegations 1.d and 1.n) are not in Applicant's bankruptcy paperwork. The remaining debt of $95 (allegation 1.e) is included in Applicant's bankruptcy.

$602

For Applicant

Medical Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.e

specific text not stated in this decision

$95

For Applicant

Medical Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.f

These debts relate to credit cards for retail purchases. They total $14,715, and appear in Applicant’s bankruptcy petition.

$14,715

For Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.g–1.i

3 sub-charges — specific text not stated in this decision (for the applicant).

For Applicant

—

1.j

Allegation 1.j relates to a gasoline company card with a balance of $2,238. Allegation 1.l is a bank credit card with a balance of $2,432. Both debts are included in Applicant's bankruptcy petition.

$2,238

For Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.k–1.n

4 sub-charges — specific text not stated in this decision (for the applicant).

For Applicant

—

1.o

This $185 bill is for a land line. In order to cut back on expenses, Applicant instructed the company to change to a minimal plan by eliminating his outgoing land-line calls. The company continued to charge him for full land-line service. The debt is included in Applicant's bankruptcy paperwork.

$185

For Applicant

Utility or Phone Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.p

specific text not stated in this decision

For Applicant

Personal Loan Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

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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