ISCR Case 12-06258.h1

Case Headnote

ISCR Case No. 12-06258.h1

grantedFeb 10, 2015· Hon. Mary E. Henry· hearing

Summary

A 36-year-old security officer for a NASA contractor was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The applicant's financial difficulties stemmed from being the sole provider during his marriage, compounded by a reduction in work hours and a divorce.

The Statement of Reasons detailed several outstanding debts. These included an unpaid medical bill of $195, which the applicant paid off in four monthly installments by April 2014. Other debts involved a $3,178 rental agreement, a $1,849 credit card collection account on which he had paid $215, a $133 collection debt that he settled in August 2014, a $4,500 jewelry collection account, a $4,260 insurance debt with $110 paid by October 2014, a $1,922 collection account with payments initiated in October 2014, and a $700 debt with three payments made by December 2014.

Despite some debts remaining unresolved, the applicant demonstrated a proactive approach to his finances. He developed a budget, secured a new part-time job, and negotiated payment plans for multiple debts. He also had a track record of resolving 12 debts both before and after the Statement of Reasons was issued. These mitigating factors, combined with the circumstances contributing to his financial issues, led to the decision to grant his security clearance.

Why the Applicant Prevailed

The applicant demonstrated a proactive approach to resolving his financial issues by developing a budget and negotiating payment plans with creditors.
He has a meaningful track record of resolving debts, having paid off 12 debts prior to and after the issuance of the SOR.
The applicant's financial difficulties were largely due to circumstances beyond his control, including a reduction in work hours and a divorce.

Conditions Referenced

Disqualifying

F.1.araisedInability or Unwillingness to Satisfy Debts
F.1.craisedA History of Not Meeting Financial Obligations

Mitigating

F.2.bappliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
F.2.cappliedThe 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
F.2.dappliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts

Key Rule Quoted

“The protection of the national security is the paramount consideration.”

Procedural Posture

SOR issuedJul 29, 2014
Answer filedAug 20, 2014
Hearing heldDec 9, 2014
Decision dateFeb 10, 2015

Cite For

Proactive Financial Management Under Guideline F
Mitigation of Financial Issues Due to Circumstances Beyond Control
Meaningful Track Record of Debt Resolution

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	SOR allegation 1.a ($195) is for an unpaid medical bill. Applicant paid this debt at $50 a month over four months with the last payment on April 16, 2014. $195	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 (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.b	SOR allegation 1.b ($3,178) concerns a rental agreement for a residence. The original amount owed, according to the February 2012 credit report, was $6,357. On March 6, 2014, the attorneys representing the creditor offered to settle the debt for $3,178 through three monthly payments of $1,059. Applicant was unable to comply with the terms of the agreement as he did not have sufficient funds. He has not paid this debt, but plans to contact the creditor when he has the funds. His budget reflects that he plans to pay $50 a month on this debt. $3,178	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 (d) good-faith effort to repay or otherwise resolve debts	Claimed Payment Plan with Creditor
1.c	The debt in SOR allegation 1.c ($1,849) concerns a collection account arising out of a credit card debt. Applicant initially negotiated a settlement for $1,093, then renegotiated a settlement on this debt for $911 and agreed to a payment plan. As of November 2014, Applicant has paid $215 on this debt. His budget reflects he plans to pay $132 a month on this debt until paid. $1,849	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 (d) good-faith effort to repay or otherwise resolve debts	Documented Payment Plan with Creditor
1.d	SOR allegation 1.d ($133) relates to a $366 collection debt. The July 2014 credit report indicated that Applicant disputed this debt as listed because a new collection creditor now owned the debt. Applicant paid the debt as part of a settlement on August 8, 2014. $133	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 (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.e	SOR allegation 1.e ($4,500) relates to a $5,348 collection account for jewelry. After an initial contact from Applicant, the creditor offered to settle the debt for $4,500. The creditor later offered to settle the case for $5,000 in a letter dated October 17, 2014. Applicant was unable to pay this amount, and the debt remains unpaid. In his budget, Applicant indicates that he would pay $50 a month on this debt. $4,500	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 (d) good-faith effort to repay or otherwise resolve debts	Claimed Payment Plan with Creditor
1.f	The debt in SOR 1.f ($4,260) concerns an insurance debt. Applicant negotiated a $50 a month payment plan on this debt. As of October 2014, he had paid $110 on this debt. He paid $50 on December 29, 2014. He included this $50 payment in his budget. $4,260	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 (d) good-faith effort to repay or otherwise resolve debts	Documented Payment Plan with Creditor
1.g	SOR allegation 1.g ($1,922) relates to a collection account. Applicant negotiated a payment plan for $54 a month in October 2014. He made his first payment in this amount on October 29, 2014, and he made a $50 payment on December 29, 2014. His budget reflects that he plans to pay $160 a month on this debt. $1,922	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 (d) good-faith effort to repay or otherwise resolve debts	Documented Payment Plan with Creditor
1.h	The last SOR debt is allegation 1.h ($700). Applicant negotiated a payment plan, which required him to pay $116.66 a month for six months. As of December 29, 2014, Applicant had made three payments. His budget includes this payment and the debt should be paid by March 2015. $700	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 (d) good-faith effort to repay or otherwise resolve debts	Documented Payment Plan with Creditor

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

SOR allegation 1.a ($195) is for an unpaid medical bill. Applicant paid this debt at $50 a month over four months with the last payment on April 16, 2014.

$195

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

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

Documented

Debt Paid in Full

1.b

SOR allegation 1.b ($3,178) concerns a rental agreement for a residence. The original amount owed, according to the February 2012 credit report, was $6,357. On March 6, 2014, the attorneys representing the creditor offered to settle the debt for $3,178 through three monthly payments of $1,059. Applicant was unable to comply with the terms of the agreement as he did not have sufficient funds. He has not paid this debt, but plans to contact the creditor when he has the funds. His budget reflects that he plans to pay $50 a month on this debt.

$3,178

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

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

Claimed

Payment Plan with Creditor

1.c

The debt in SOR allegation 1.c ($1,849) concerns a collection account arising out of a credit card debt. Applicant initially negotiated a settlement for $1,093, then renegotiated a settlement on this debt for $911 and agreed to a payment plan. As of November 2014, Applicant has paid $215 on this debt. His budget reflects he plans to pay $132 a month on this debt until paid.

$1,849

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

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

Documented

Payment Plan with Creditor

1.d

SOR allegation 1.d ($133) relates to a $366 collection debt. The July 2014 credit report indicated that Applicant disputed this debt as listed because a new collection creditor now owned the debt. Applicant paid the debt as part of a settlement on August 8, 2014.

$133

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

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

Documented

Debt Paid in Full

1.e

SOR allegation 1.e ($4,500) relates to a $5,348 collection account for jewelry. After an initial contact from Applicant, the creditor offered to settle the debt for $4,500. The creditor later offered to settle the case for $5,000 in a letter dated October 17, 2014. Applicant was unable to pay this amount, and the debt remains unpaid. In his budget, Applicant indicates that he would pay $50 a month on this debt.

$4,500

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

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

Claimed

Payment Plan with Creditor

1.f

The debt in SOR 1.f ($4,260) concerns an insurance debt. Applicant negotiated a $50 a month payment plan on this debt. As of October 2014, he had paid $110 on this debt. He paid $50 on December 29, 2014. He included this $50 payment in his budget.

$4,260

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

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

Documented

Payment Plan with Creditor

1.g

SOR allegation 1.g ($1,922) relates to a collection account. Applicant negotiated a payment plan for $54 a month in October 2014. He made his first payment in this amount on October 29, 2014, and he made a $50 payment on December 29, 2014. His budget reflects that he plans to pay $160 a month on this debt.

$1,922

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

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

Documented

Payment Plan with Creditor

1.h

The last SOR debt is allegation 1.h ($700). Applicant negotiated a payment plan, which required him to pay $116.66 a month for six months. As of December 29, 2014, Applicant had made three payments. His budget includes this payment and the debt should be paid by March 2015.

$700

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

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

Documented

Payment Plan with Creditor

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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

PROCEDURAL RULINGS

FINDINGS OF FACT

POLICIES

ANALYSIS

WHOLE PERSON CONCEPT

FORMAL FINDINGS

CONCLUSION

FOOTNOTES