ISCR Case 11-14611.h1

Case Headnote

ISCR Case No. 11-14611.h1

grantedDec 13, 2013· Hon. Mark W. Harvey· hearing

Summary

This DOHA security clearance decision involved a 42-year-old accountant whose eligibility was initially questioned under Guideline F (Financial Considerations). The Statement of Reasons cited 15 delinquent debts totaling $23,416 and two bankruptcies, one in May 1995 and another in December 2003, both of which discharged nonpriority, unsecured debts.

The applicant demonstrated significant progress in addressing these financial concerns. Specific debts were resolved, including a $744 judgment, several medical debts ranging from $20 to $101, and an education debt of $674. A state judgment of $10,751 and an associated education debt of $7,940 were being paid at $250 per month. Other debts were settled, disputed, or no longer appeared on the applicant's account statements. Less than $3,000 of the original debt remained unresolved.

The judge determined that the applicant's financial difficulties, including family medical expenses and insufficient income, were largely beyond her control. The applicant also provided evidence of a good-faith effort to repay overdue creditors. Consequently, the mitigating conditions under Guideline F were applied, and the applicant was granted eligibility for access to classified information.

Why the Applicant Prevailed

The applicant demonstrated substantial progress in resolving her financial issues, with less than $3,000 of debt remaining.
The judge found that the financial problems were largely due to circumstances beyond the applicant's control, including family medical expenses and insufficient income.
The applicant provided evidence of a good-faith effort to repay overdue creditors.

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

Key Rule Quoted

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

Procedural Posture

SOR issuedMar 25, 2013
Answer filedMay 9, 2013Applicant waived her right to a hearing.
Hearing held—
Decision dateDec 13, 2013

Cite For

Mitigating Conditions Under Guideline F Due to Financial Difficulties
Impact of Circumstances Beyond an Applicant's Control on Financial Issues
Good-faith Efforts to Resolve Debts in Security Clearance Cases

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	Judgment in ¶ 1.a ($744) was satisfied. $744	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 (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.b	State judgment in ¶ 1.b ($10,751) by paying $250 per month. $10,751	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 (d) good-faith effort to repay or otherwise resolve debts	Documented Payment Plan with Creditor
1.c	Medical debt in ¶ 1.c ($32) paid. $32	For Applicant	Medical Debt	Admitted	—	—	Documented Debt Paid in Full
1.d	Medical debt in ¶ 1.d ($82) paid. $82	For Applicant	Medical Debt	Admitted	—	—	Documented Debt Paid in Full
1.e	Medical debt in ¶ 1.e ($20) paid. $20	For Applicant	Medical Debt	Admitted	—	—	Documented Debt Paid in Full
1.f	Medical debt in ¶ 1.f ($101) paid. $101	For Applicant	Medical Debt	Admitted	—	—	Documented Debt Paid in Full
1.g	Medical debt in ¶ 1.g ($52) paid. $52	For Applicant	Medical Debt	Admitted	—	—	Documented Debt Paid in Full
1.h	Medical debt in ¶ 1.h ($899) is unpaid and disputed. $899	Against Applicant	Medical Debt	Denied with Explanation	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.i	Medical debt in ¶ 1.i ($300) is unpaid and disputed. $300	Against Applicant	Medical Debt	Denied with Explanation	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.j	Medical debt in ¶ 1.j ($943) settled. $943	For Applicant	Medical Debt	Admitted	—	—	Documented Debt Paid in Full
1.k	Telecommunications debt in ¶ 1.k ($257) disputed. $257	Against Applicant	Utility or Phone Debt	Denied with Explanation	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.l	Education debt in ¶ 1.l ($674) paid. $674	For Applicant	Student Loan Debt	Admitted	—	—	Documented Debt Paid in Full
1.m	Education debt in ¶ 1.m ($7,940) is the same debt as in ¶ 1.b (payment plan). $7,940	For Applicant	Student 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	Documented Payment Plan with Creditor
1.n	Medical debt in ¶ 1.n ($376) is no longer on Applicant’s account statement. $376	For Applicant	Medical Debt	Admitted	—	—	Documented Debt Paid in Full
1.o	Credit card or bank debt in ¶ 1.o ($245) disputed. $245	Against Applicant	Credit Card Debt	Denied with Explanation	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.p	Bankruptcy in May 1995 discharged nonpriority, unsecured debts.	For Applicant	Bankruptcy Filing	Admitted	—	—	—
1.q	Bankruptcy in December 2003 discharged nonpriority, unsecured debts.	For Applicant	Bankruptcy Filing	Admitted	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Judgment in ¶ 1.a ($744) was satisfied.

$744

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

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

Documented

Debt Paid in Full

1.b

State judgment in ¶ 1.b ($10,751) by paying $250 per month.

$10,751

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

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

Documented

Payment Plan with Creditor

1.c

Medical debt in ¶ 1.c ($32) paid.

$32

For Applicant

Medical Debt

Admitted

—

Documented

Debt Paid in Full

1.d

Medical debt in ¶ 1.d ($82) paid.

$82

For Applicant

Medical Debt

Admitted

—

Documented

Debt Paid in Full

1.e

Medical debt in ¶ 1.e ($20) paid.

$20

For Applicant

Medical Debt

Admitted

—

Documented

Debt Paid in Full

1.f

Medical debt in ¶ 1.f ($101) paid.

$101

For Applicant

Medical Debt

Admitted

—

Documented

Debt Paid in Full

1.g

Medical debt in ¶ 1.g ($52) paid.

$52

For Applicant

Medical Debt

Admitted

—

Documented

Debt Paid in Full

1.h

Medical debt in ¶ 1.h ($899) is unpaid and disputed.

$899

Against Applicant

Medical Debt

Denied with Explanation

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.i

Medical debt in ¶ 1.i ($300) is unpaid and disputed.

$300

Against Applicant

Medical Debt

Denied with Explanation

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.j

Medical debt in ¶ 1.j ($943) settled.

$943

For Applicant

Medical Debt

Admitted

—

Documented

Debt Paid in Full

1.k

Telecommunications debt in ¶ 1.k ($257) disputed.

$257

Against Applicant

Utility or Phone Debt

Denied with Explanation

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.l

Education debt in ¶ 1.l ($674) paid.

$674

For Applicant

Student Loan Debt

Admitted

—

Documented

Debt Paid in Full

1.m

Education debt in ¶ 1.m ($7,940) is the same debt as in ¶ 1.b (payment plan).

$7,940

For Applicant

Student 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

Documented

Payment Plan with Creditor

1.n

Medical debt in ¶ 1.n ($376) is no longer on Applicant’s account statement.

$376

For Applicant

Medical Debt

Admitted

—

Documented

Debt Paid in Full

1.o

Credit card or bank debt in ¶ 1.o ($245) disputed.

$245

Against Applicant

Credit Card Debt

Denied with Explanation

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.p

Bankruptcy in May 1995 discharged nonpriority, unsecured debts.

For Applicant

Bankruptcy Filing

Admitted

—

1.q

Bankruptcy in December 2003 discharged nonpriority, unsecured debts.

For Applicant

Bankruptcy Filing

Admitted

—

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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

POLICIES

ANALYSIS

WHOLE PERSON CONCEPT

FORMAL FINDINGS

CONCLUSION

FOOTNOTES