ISCR Case 14-00861.h1

Case Headnote

ISCR Case No. 14-00861.h1

grantedJul 1, 2014· Hon. David M. White· hearing

Summary

A 31-year-old veteran with a combat-related disability was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The Statement of Reasons detailed several financial delinquencies, primarily stemming from his first marriage and divorce.

Allegations included a resolved apartment lease debt from 2013, and multiple joint debts from 2005-2007 that became delinquent in 2007 or 2010, which his first wife was responsible for managing. These included a $1,029 credit card debt, a $3,814 joint loan, a $531 collection agency debt for a telephone bill, a $2,094 installment loan, and a $113 cable service bill. A $399 clothing store account was also specifically assigned to his ex-wife in their divorce decree. A $2,549 armed forces exchange credit card debt, reported in August 2013, was partially paid by a $2,236 tax refund in May 2014, leaving a $313 balance. The most significant delinquency was a $76,227 mortgage debt from a VA-guaranteed loan taken in October 2007, which became delinquent in 2008. While their 2010 divorce decree ordered equal liability for the debt following foreclosure, this mortgage debt remains unresolved due to issues with the creditor bank and his ex-wife's initial non-cooperation.

The clearance was granted because the applicant demonstrated no new delinquencies over the past five years, successfully disputed or resolved several previous debts, and maintains stable employment with a monthly surplus income.

Why the Applicant Prevailed

The applicant has incurred no new delinquencies during the past five years.
He has successfully disputed or resolved previous debts.
The applicant has stable employment with a monthly surplus income.

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 Infrequently
AG ¶ 20(b)appliedConditions Largely Beyond the Person's Control
AG ¶ 20(c)appliedReceived Counseling and Indications of Resolution
AG ¶ 20(d)appliedGood-faith Effort to Repay or Resolve Debts
AG ¶ 20(e)appliedReasonable Basis to Dispute Legitimacy of Debts

Key Rule Quoted

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

Procedural Posture

SOR issuedApr 24, 2014
Answer filedMay 28, 2014
Hearing held—Decided on the written record without a hearing.
Decision dateOct 6, 2015

Cite For

Mitigation of Financial Concerns Under Guideline F
Impact of Stable Employment on Security Clearance Eligibility
Resolution of Debts as a Factor in 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	The debt alleged in SOR ¶ 1.a (and b) pertained to an apartment lease he entered into in January 2013 and terminated, with required notice, in June 2013. Applicant provided the final account statement from the landlord showing a zero balance due. This debt is resolved.	For Applicant	Unspecified Financial	Admitted	—	(a) behavior happened long ago / infrequent / unlikely to recur (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 (e) reasonable, documented basis to dispute the debt	—
1.b	specific text not stated in this decision	For Applicant	Unspecified Financial	Unknown	—	—	—
1.c	The former $1,029 joint credit card debt alleged in SOR ¶ 1.c (and j); the $3,814 joint loan alleged in SOR ¶ 1.d; the $531 collection agency debt for a former telephone bill alleged in SOR ¶ 1.e; the $2,094 installment loan alleged in SOR ¶ 1.h; and the $113 cable service bill alleged in SOR ¶ 1.i; were accounts opened between 2005 and 2007, that became delinquent in 2007 or 2010 while his first wife was supposed to be managing the family finances.	For Applicant	Unspecified Financial	Admitted	—	(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	—
1.d	The $3,814 joint loan alleged in SOR ¶ 1.d; was an account opened between 2005 and 2007, that became delinquent in 2007 or 2010 while his first wife was supposed to be managing the family finances.	For Applicant	Unspecified Financial	Admitted	—	(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	—
1.e	The $531 collection agency debt for a former telephone bill alleged in SOR ¶ 1.e; was an account opened between 2005 and 2007, that became delinquent in 2007 or 2010 while his first wife was supposed to be managing the family finances.	For Applicant	Unspecified Financial	Admitted	—	(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	—
1.f	The $76,227 delinquency alleged in SOR ¶ 1.f arose from the first mortgage loan on the home he purchased jointly with his first wife with a VA-guaranteed loan in October 2007. Payments toward this loan became delinquent in 2008, and their February 2010 divorce decree ordered that they be equally liable for any remaining debt resulting from the foreclosure of their marital residence. Due to the foreclosure-practice problems encountered by the creditor bank, and his ex-wife’s initial reluctance to cooperate in any negotiated resolution, this mortgage debt remains unresolved. $76,227	For Applicant	Mortgage or Home Loan Debt	Admitted	—	(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	—
1.g	The $2,549 debt to an armed forces exchange credit card account, alleged in SOR ¶ 1.g, is based on an August 2013 report to a credit bureau. Applicant was told that the debt would be paid out of his final severance pay in 2013, but that did not occur. In May 2014, the Department of the Treasury applied his $2,236 income tax refund for tax year 2013 toward this debt, with a resulting balance of $313. $2,549	For Applicant	Credit Card Debt	Admitted	—	(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	—
1.h	The $2,094 installment loan alleged in SOR ¶ 1.h; was an account opened between 2005 and 2007, that became delinquent in 2007 or 2010 while his first wife was supposed to be managing the family finances.	For Applicant	Unspecified Financial	Admitted	—	(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	—
1.i	The $113 cable service bill alleged in SOR ¶ 1.i; was an account opened between 2005 and 2007, that became delinquent in 2007 or 2010 while his first wife was supposed to be managing the family finances. $113	For Applicant	Utility or Phone Debt	Admitted	—	(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	—
1.j	specific text not stated in this decision	For Applicant	Unspecified Financial	Unknown	—	—	—
1.k	The $399 clothing store account alleged in SOR ¶ 1.k falls into this same category, and was specifically assigned to his ex-wife in their divorce decree. $399	For Applicant	Unspecified Financial	Admitted	—	(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	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

The debt alleged in SOR ¶ 1.a (and b) pertained to an apartment lease he entered into in January 2013 and terminated, with required notice, in June 2013. Applicant provided the final account statement from the landlord showing a zero balance due. This debt is resolved.

For Applicant

Unspecified Financial

Admitted

—

(a) behavior happened long ago / infrequent / unlikely to recur

(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

(e) reasonable, documented basis to dispute the debt

—

1.b

specific text not stated in this decision

For Applicant

Unspecified Financial

Unknown

—

1.c

The former $1,029 joint credit card debt alleged in SOR ¶ 1.c (and j); the $3,814 joint loan alleged in SOR ¶ 1.d; the $531 collection agency debt for a former telephone bill alleged in SOR ¶ 1.e; the $2,094 installment loan alleged in SOR ¶ 1.h; and the $113 cable service bill alleged in SOR ¶ 1.i; were accounts opened between 2005 and 2007, that became delinquent in 2007 or 2010 while his first wife was supposed to be managing the family finances.

For Applicant

Unspecified Financial

Admitted

—

(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

—

1.d

The $3,814 joint loan alleged in SOR ¶ 1.d; was an account opened between 2005 and 2007, that became delinquent in 2007 or 2010 while his first wife was supposed to be managing the family finances.

For Applicant

Unspecified Financial

Admitted

—

(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

—

1.e

The $531 collection agency debt for a former telephone bill alleged in SOR ¶ 1.e; was an account opened between 2005 and 2007, that became delinquent in 2007 or 2010 while his first wife was supposed to be managing the family finances.

For Applicant

Unspecified Financial

Admitted

—

(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

—

1.f

The $76,227 delinquency alleged in SOR ¶ 1.f arose from the first mortgage loan on the home he purchased jointly with his first wife with a VA-guaranteed loan in October 2007. Payments toward this loan became delinquent in 2008, and their February 2010 divorce decree ordered that they be equally liable for any remaining debt resulting from the foreclosure of their marital residence. Due to the foreclosure-practice problems encountered by the creditor bank, and his ex-wife’s initial reluctance to cooperate in any negotiated resolution, this mortgage debt remains unresolved.

$76,227

For Applicant

Mortgage or Home Loan Debt

Admitted

—

(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

—

1.g

The $2,549 debt to an armed forces exchange credit card account, alleged in SOR ¶ 1.g, is based on an August 2013 report to a credit bureau. Applicant was told that the debt would be paid out of his final severance pay in 2013, but that did not occur. In May 2014, the Department of the Treasury applied his $2,236 income tax refund for tax year 2013 toward this debt, with a resulting balance of $313.

$2,549

For Applicant

Credit Card Debt

Admitted

—

(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

—

1.h

The $2,094 installment loan alleged in SOR ¶ 1.h; was an account opened between 2005 and 2007, that became delinquent in 2007 or 2010 while his first wife was supposed to be managing the family finances.

For Applicant

Unspecified Financial

Admitted

—

(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

—

1.i

The $113 cable service bill alleged in SOR ¶ 1.i; was an account opened between 2005 and 2007, that became delinquent in 2007 or 2010 while his first wife was supposed to be managing the family finances.

$113

For Applicant

Utility or Phone Debt

Admitted

—

(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

—

1.j

specific text not stated in this decision

For Applicant

Unspecified Financial

Unknown

—

1.k

The $399 clothing store account alleged in SOR ¶ 1.k falls into this same category, and was specifically assigned to his ex-wife in their divorce decree.

$399

For Applicant

Unspecified Financial

Admitted

—

(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

—

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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 CONCEPT

FORMAL FINDINGS

CONCLUSION

FOOTNOTES