ISCR Case 12-06963.h1

Case Headnote

ISCR Case No. 12-06963.h1

grantedFeb 25, 2016· Hon. Darlene Lokey Anderson· hearing

Summary

A 44-year-old Engineering Supervisor with a mathematics degree was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The applicant's financial difficulties stemmed primarily from her husband's medical issues and their subsequent separation.

The Statement of Reasons detailed several debts: a mortgage account with a past-due amount of approximately $64,266 on a house in foreclosure, which has since been sold with no deficiency balance owed; a charged-off account of approximately $512, for which the applicant paid $205.11, then an additional $100 in October 2015, with plans to pay the remaining balance; and two delinquent medical accounts of approximately $166 and $57, both of which were paid off in October 2015.

The judge determined that the applicant's financial issues were largely beyond her control and that she had made good-faith efforts toward resolution, including paying off several accounts and receiving financial counseling. Evidence of financial rehabilitation was clear, leading to the decision to grant the security clearance.

Why the Applicant Prevailed

The applicant demonstrated that her financial issues were largely due to circumstances beyond her control, including her husband's medical problems and their separation.
The applicant has made a good-faith effort to resolve her debts, including paying off several delinquent accounts and receiving financial counseling.
There is clear evidence of financial rehabilitation, with no deficiency balance owed on the foreclosed property.

Conditions Referenced

Disqualifying

19(a)raisedInability or Unwillingness to Satisfy Debts
19(c)raisedA History of Not Meeting Financial Obligations

Mitigating

20(b)appliedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
20(c)appliedThe 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
20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts

Key Rule Quoted

“The adjudicative process is an examination of a sufficient period of a person’s life to make an affirmative determination that the person is an acceptable security risk.”

Procedural Posture

SOR issuedMay 19, 2015
Answer filedJun 18, 2015Applicant elected to have the case determined on a written record.
Hearing held—No hearing; case determined on written record.
Decision dateFeb 25, 2016

Cite For

Mitigating Circumstances Under Guideline F Due to Unexpected Personal Issues
Good-faith Efforts to Resolve Financial Obligations
Financial Rehabilitation and Counseling as Mitigating Factors

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 became indebted to a mortgage lender on a mortgage account that was past due in the approximate amount of $64,266. The house was in foreclosure status with a total loan balance of $171,867. Applicant explained that the house has now been sold. She contacted the lender and was told that there is no deficiency balance owed. $64,266	For Applicant	Mortgage or Home 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 (d) good-faith effort to repay or otherwise resolve debts	Documented Other
1.b	Applicant is indebted to a creditor for an account that has been charged off in the approximate amount of $512. Applicant states that she paid $205.11, and thought the matter was settled. She contacted the creditor and was told that she still owed $307.66. She paid $100 toward the debt on October 5, 2015, and plans to continue to pay off the remaining balance soon. $512	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 Debt Paid in Full
1.c	Applicant is indebted for a delinquent medical account in the approximate amount of $166. Applicant paid off the account in October 2015. $166	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.d	Applicant is indebted for a delinquent medical account in the approximate amount of $57. Applicant paid off the debt in October 2015. $57	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

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant became indebted to a mortgage lender on a mortgage account that was past due in the approximate amount of $64,266. The house was in foreclosure status with a total loan balance of $171,867. Applicant explained that the house has now been sold. She contacted the lender and was told that there is no deficiency balance owed.

$64,266

For Applicant

Mortgage or Home 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

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

Documented

Other

1.b

Applicant is indebted to a creditor for an account that has been charged off in the approximate amount of $512. Applicant states that she paid $205.11, and thought the matter was settled. She contacted the creditor and was told that she still owed $307.66. She paid $100 toward the debt on October 5, 2015, and plans to continue to pay off the remaining balance soon.

$512

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

Debt Paid in Full

1.c

Applicant is indebted for a delinquent medical account in the approximate amount of $166. Applicant paid off the account in October 2015.

$166

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.d

Applicant is indebted for a delinquent medical account in the approximate amount of $57. Applicant paid off the debt in October 2015.

$57

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

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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

CONCLUSION

FORMAL FINDINGS

DECISION