ISCR Case 11-14781.h1

Case Headnote

ISCR Case No. 11-14781.h1

deniedDec 31, 2013· Hon. Wilford H. Ross· hearing

Summary

A 56-year-old unmarried defense contractor was denied a security clearance under Guideline F, Financial Considerations, due to significant unresolved financial issues. The applicant admitted to 19 delinquent debts totaling approximately $17,450. These debts included several medical bills ranging from $30 to $1,569, as well as other past-due obligations to various creditors, including a $705 debt for telephone service and a $6,590 debt to another creditor.

The applicant acknowledged her debts and attributed them to health problems and co-signing for her children. However, the decision noted that her financial difficulties had persisted for several years.

Ultimately, the denial was based on the applicant's failure to provide sufficient evidence of responsible financial management or a concrete plan to resolve her outstanding debts. No evidence of ongoing payments to creditors was presented, leading to the denial of her security clearance.

Why the Applicant Was Denied

Applicant has 19 delinquent debts totaling approximately $17,450, which remain unresolved.
Applicant did not provide evidence of a plan to address her financial issues or ongoing payments to creditors.
The applicant's financial difficulties have persisted for several years without sufficient evidence of responsible action or resolution.

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)rejectedConditions Largely Beyond the Person's ControlApplicant did not show sufficient evidence that she acted responsibly under the circumstances.
AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsApplicant did not demonstrate clear indications that her financial problems are being resolved.
AG ¶ 20(e)appliedReasonable Basis to Dispute the Legitimacy of the DebtApplicant successfully disputed three debts.

Key Rule Quoted

“Failure or inability to live within one’s means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual’s reliability, trustworthiness and ability to protect classified information.”

Procedural Posture

SOR issuedMar 14, 2013
Answer filedJune 4, 2013; July 19, 2013; August 7, 2013
Hearing held—Applicant requested a decision without a hearing.
Decision dateDec 31, 2013

Cite For

Denial of Security Clearance Due to Unresolved Financial Issues Under Guideline F
Importance of Demonstrating Responsible Financial Management for Clearance Eligibility
Impact of Long-standing Financial Difficulties on Security Clearance Decisions

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 admits that she is indebted to a medical creditor for a past-due debt in the amount of $30. $30	Against Applicant	Medical Debt	Admitted	—	—	—
1.b	Applicant admits that she is indebted to a medical creditor for a past-due debt in the amount of $187. $187	Against Applicant	Medical Debt	Admitted	—	—	—
1.c	Applicant admits that she is indebted to a medical creditor for a past-due debt in the amount of $95. $95	Against Applicant	Medical Debt	Admitted	—	—	—
1.d	Applicant admits that she is indebted to a medical creditor for a past-due debt in the amount of $1,569. $1,569	Against Applicant	Medical Debt	Admitted	—	—	—
1.e	Applicant admits that she is indebted to a medical creditor for a past-due debt in the amount of $369. $369	Against Applicant	Medical Debt	Admitted	—	—	—
1.f	Applicant admits that she was indebted to a creditor for a past-due debt in the amount of $53. $53	For Applicant	Unspecified Financial	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.g	Applicant admits that she is indebted to a creditor for a past-due debt in the amount of $1,388. $1,388	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.h	Applicant admits that she is indebted to a creditor for a past-due debt in the amount of $798. $798	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.i	Applicant admits that she is indebted to a creditor for a past-due debt in the amount of $752. $752	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.j	Applicant admits that she is indebted to a creditor for a past-due debt in the amount of $1,870. $1,870	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.k	Applicant admits that she is indebted to a creditor for a past-due debt in the amount of $1,026. $1,026	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.l	Applicant admits that she is indebted to a creditor for a past-due debt in the amount of $6,590. $6,590	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.m	Applicant admits that she is indebted to a creditor for a past-due debt in the amount of $780. $780	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.n	Applicant admits that she was indebted to a creditor for a past-due debt in the amount of $62. $62	For Applicant	Unspecified Financial	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.o	Applicant admits that she was indebted for a past-due debt in the amount of $705 for telephone service. $705	For Applicant	Unspecified Financial	Admitted	—	(e) reasonable, documented basis to dispute the debt	Documented Debt Disputed with Creditor
1.p	Applicant admits that she is indebted to a creditor for a past-due debt in the amount of $98. $98	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.q	Applicant admits that she is indebted to a creditor for a past-due debt in the amount of $74. $74	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.r	Applicant admits that she is indebted to a creditor for a past-due debt in the amount of $56. $56	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.s	Applicant admits that she is indebted to a creditor for a past-due debt in the amount of $948. $948	Against Applicant	Unspecified Financial	Admitted	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant admits that she is indebted to a medical creditor for a past-due debt in the amount of $30.

$30

Against Applicant

Medical Debt

Admitted

—

1.b

Applicant admits that she is indebted to a medical creditor for a past-due debt in the amount of $187.

$187

Against Applicant

Medical Debt

Admitted

—

1.c

Applicant admits that she is indebted to a medical creditor for a past-due debt in the amount of $95.

$95

Against Applicant

Medical Debt

Admitted

—

1.d

Applicant admits that she is indebted to a medical creditor for a past-due debt in the amount of $1,569.

$1,569

Against Applicant

Medical Debt

Admitted

—

1.e

Applicant admits that she is indebted to a medical creditor for a past-due debt in the amount of $369.

$369

Against Applicant

Medical Debt

Admitted

—

1.f

Applicant admits that she was indebted to a creditor for a past-due debt in the amount of $53.

$53

For Applicant

Unspecified Financial

Admitted

—

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

Documented

Debt Paid in Full

1.g

Applicant admits that she is indebted to a creditor for a past-due debt in the amount of $1,388.

$1,388

Against Applicant

Unspecified Financial

Admitted

—

1.h

Applicant admits that she is indebted to a creditor for a past-due debt in the amount of $798.

$798

Against Applicant

Unspecified Financial

Admitted

—

1.i

Applicant admits that she is indebted to a creditor for a past-due debt in the amount of $752.

$752

Against Applicant

Unspecified Financial

Admitted

—

1.j

Applicant admits that she is indebted to a creditor for a past-due debt in the amount of $1,870.

$1,870

Against Applicant

Unspecified Financial

Admitted

—

1.k

Applicant admits that she is indebted to a creditor for a past-due debt in the amount of $1,026.

$1,026

Against Applicant

Unspecified Financial

Admitted

—

1.l

Applicant admits that she is indebted to a creditor for a past-due debt in the amount of $6,590.

$6,590

Against Applicant

Unspecified Financial

Admitted

—

1.m

Applicant admits that she is indebted to a creditor for a past-due debt in the amount of $780.

$780

Against Applicant

Unspecified Financial

Admitted

—

1.n

Applicant admits that she was indebted to a creditor for a past-due debt in the amount of $62.

$62

For Applicant

Unspecified Financial

Admitted

—

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

Documented

Debt Paid in Full

1.o

Applicant admits that she was indebted for a past-due debt in the amount of $705 for telephone service.

$705

For Applicant

Unspecified Financial

Admitted

—

(e) reasonable, documented basis to dispute the debt

Documented

Debt Disputed with Creditor

1.p

Applicant admits that she is indebted to a creditor for a past-due debt in the amount of $98.

$98

Against Applicant

Unspecified Financial

Admitted

—

1.q

Applicant admits that she is indebted to a creditor for a past-due debt in the amount of $74.

$74

Against Applicant

Unspecified Financial

Admitted

—

1.r

Applicant admits that she is indebted to a creditor for a past-due debt in the amount of $56.

$56

Against Applicant

Unspecified Financial

Admitted

—

1.s

Applicant admits that she is indebted to a creditor for a past-due debt in the amount of $948.

$948

Against Applicant

Unspecified Financial

Admitted

—

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Case Profile

Summary

Why the Applicant Was Denied

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