ISCR Case 14-01003.h1

Case Headnote

ISCR Case No. 14-01003.h1

grantedSep 15, 2014· Hon. Carol G. Ricciardello· hearing

Summary

A 46-year-old defense contractor and former Navy service member was granted a security clearance despite concerns under Guideline F (Financial Considerations). The applicant's financial difficulties included a bankruptcy in April 2007, which discharged an $86,000 vehicle loan incurred during deployment, and multiple delinquent debts. These debts included a $1,344 state tax lien, judgments totaling $644 and $2,512 (the latter paid through a plan completed in December 2011), and various other obligations for utilities, medical services, cable, and credit cards.

Additional debts included a $250 payday loan, a $3,417 deficiency from a voluntarily repossessed vehicle, and a $1,239 past-due vehicle loan. Several smaller debts, such as medical deductibles, a returned check for school pictures, and retail store accounts, were also noted. The applicant settled some debts, disputed others, and paid some that were initially misaddressed.

The judge found that the applicant successfully mitigated the concerns by demonstrating that the financial issues were largely beyond his control, citing his wife's medical problems and the impact of a family member's actions. The applicant also showed he took responsible steps to address his debts, including establishing payment plans and receiving financial assistance from his sister. His credible testimony and actions indicated a commitment to resolving his financial obligations, leading to the clearance being granted.

Why the Applicant Prevailed

The applicant demonstrated that financial issues were largely beyond his control due to family medical problems and manipulation by a relative.
He actively worked to resolve his debts, including establishing payment plans and receiving financial assistance from his sister.
The applicant's credible testimony and actions indicated a commitment to resolving his financial obligations.

Conditions Referenced

Disqualifying

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

Mitigating

F.20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
F.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
F.20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
F.20(e)appliedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due Debts

Key Rule Quoted

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

Procedural Posture

SOR issuedApr 28, 2014
Answer filedMay 23, 2014
Hearing heldAug 20, 2014record held open until 08/27/2014
Decision dateSep 15, 2014

Cite For

Mitigation of Financial Issues Under Guideline F Due to Circumstances Beyond Control
Good-faith Efforts to Resolve Debts as a Mitigating Factor
Impact of Family Medical Issues on Financial Stability

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 in SOR ¶ 1.a ($86,000) was discharged in bankruptcy in April 2007, which included a loan for a vehicle that was purchased while he was deployed. $86,000	For Applicant	Unspecified Financial	Admitted	—	—	—
1.b	The debt in SOR ¶ 1.b ($1,344) is a state tax lien. $1,344	For Applicant	Tax Unpaid	Denied	—	(b) conditions largely beyond the person’s control; acted responsibly	Claimed Other
1.c	The debt in SOR ¶ 1.c ($644) is a judgment that was reaffirmed during Applicant’s bankruptcy. $644	For Applicant	Unspecified Financial	Admitted	—	—	—
1.d	The debt in SOR ¶ 1.d ($2,512) was a judgment that was reaffirmed during Applicant’s bankruptcy. He paid the debt through a payment plan and completed the plan in December 2011. $2,512	For Applicant	Judgment Against Applicant	Admitted	—	—	—
1.e	The debt in SOR ¶ 1.e ($466) was a utility bill. $466	For Applicant	Utility or Phone Debt	Denied	—	—	—
1.f	The debt in SOR ¶ 1.f ($87) is a bill for his stepdaughter’s doctor. $87	For Applicant	Medical Debt	Unknown	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Payment Plan with Creditor
1.g	The debt in SOR ¶ 1.g ($979) was for gas services to his home before he moved. $979	For Applicant	Utility or Phone Debt	Unknown	—	—	—
1.h	The debt in SOR ¶ 1.h ($1,309) is for medical services. Applicant disputed the debt for medical services on his credit report. $1,309	For Applicant	Medical Debt	Unknown	—	—	—
1.i	The debt in SOR ¶ 1.i ($315) is for cable services. Applicant settled the debt for $150. $315	For Applicant	Utility or Phone Debt	Unknown	—	—	—
1.j	The debts in SOR ¶ 1.j ($50) and ¶ 1.k ($50) are deductibles for medical debts. The bills were originally mailed to an incorrect address. They have been paid. $100	For Applicant	Medical Debt	Unknown	—	—	—
1.l	The debt in SOR ¶ 1.l ($250) was a payday loan Applicant obtained when he lived in a different state. $250	For Applicant	Unspecified Financial	Unknown	—	—	—
1.m	The debt in SOR ¶ 1.m ($438) is a credit card debt. $438	For Applicant	Credit Card Debt	Unknown	—	—	—
1.n	The debt in SOR ¶ 1.n ($373) is a credit card debt. Applicant stated that when he received the credit card he was inappropriately charged large fees. $373	For Applicant	Credit Card Debt	Unknown	—	—	—
1.o	The debt in SOR ¶ 1.o ($753) is a credit card debt Applicant settled for $154. $753	For Applicant	Credit Card Debt	Unknown	—	—	—
1.p	The debts in SOR ¶ 1.p ($521) and ¶ 1.q ($702) are for communication services. Applicant believes the debts are duplicates. $1,223	For Applicant	Unspecified Financial	Unknown	—	—	—
1.r	The debt in SOR ¶ 1.r ($3,417) is the deficiency owed on a vehicle loan after the vehicle was voluntarily repossessed. $3,417	For Applicant	Auto Loan Debt	Unknown	—	—	—
1.s	The debt in SOR ¶ 1.s ($1,239) is the amount past due on a vehicle loan. $1,239	For Applicant	Auto Loan Debt	Unknown	—	—	—
1.t	The debt in SOR ¶ 1.t ($180) is a utility bill. $180	For Applicant	Utility or Phone Debt	Unknown	—	—	—
1.u	The debt in SOR ¶ 1.u ($45) was for a returned check for school pictures. $45	For Applicant	Unspecified Financial	Unknown	—	—	—
1.v	The debts in SOR ¶ 1.v ($235) and ¶ 1.w ($332) were originally from a retail store and are now with a collection company. $567	For Applicant	Unspecified Financial	Unknown	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

The debt in SOR ¶ 1.a ($86,000) was discharged in bankruptcy in April 2007, which included a loan for a vehicle that was purchased while he was deployed.

$86,000

For Applicant

Unspecified Financial

Admitted

—

1.b

The debt in SOR ¶ 1.b ($1,344) is a state tax lien.

$1,344

For Applicant

Tax Unpaid

Denied

—

(b) conditions largely beyond the person’s control; acted responsibly

Claimed

Other

1.c

The debt in SOR ¶ 1.c ($644) is a judgment that was reaffirmed during Applicant’s bankruptcy.

$644

For Applicant

Unspecified Financial

Admitted

—

1.d

The debt in SOR ¶ 1.d ($2,512) was a judgment that was reaffirmed during Applicant’s bankruptcy. He paid the debt through a payment plan and completed the plan in December 2011.

$2,512

For Applicant

Judgment Against Applicant

Admitted

—

1.e

The debt in SOR ¶ 1.e ($466) was a utility bill.

$466

For Applicant

Utility or Phone Debt

Denied

—

1.f

The debt in SOR ¶ 1.f ($87) is a bill for his stepdaughter’s doctor.

$87

For Applicant

Medical Debt

Unknown

—

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

Documented

Payment Plan with Creditor

1.g

The debt in SOR ¶ 1.g ($979) was for gas services to his home before he moved.

$979

For Applicant

Utility or Phone Debt

Unknown

—

1.h

The debt in SOR ¶ 1.h ($1,309) is for medical services. Applicant disputed the debt for medical services on his credit report.

$1,309

For Applicant

Medical Debt

Unknown

—

1.i

The debt in SOR ¶ 1.i ($315) is for cable services. Applicant settled the debt for $150.

$315

For Applicant

Utility or Phone Debt

Unknown

—

1.j

The debts in SOR ¶ 1.j ($50) and ¶ 1.k ($50) are deductibles for medical debts. The bills were originally mailed to an incorrect address. They have been paid.

$100

For Applicant

Medical Debt

Unknown

—

1.l

The debt in SOR ¶ 1.l ($250) was a payday loan Applicant obtained when he lived in a different state.

$250

For Applicant

Unspecified Financial

Unknown

—

1.m

The debt in SOR ¶ 1.m ($438) is a credit card debt.

$438

For Applicant

Credit Card Debt

Unknown

—

1.n

The debt in SOR ¶ 1.n ($373) is a credit card debt. Applicant stated that when he received the credit card he was inappropriately charged large fees.

$373

For Applicant

Credit Card Debt

Unknown

—

1.o

The debt in SOR ¶ 1.o ($753) is a credit card debt Applicant settled for $154.

$753

For Applicant

Credit Card Debt

Unknown

—

1.p

The debts in SOR ¶ 1.p ($521) and ¶ 1.q ($702) are for communication services. Applicant believes the debts are duplicates.

$1,223

For Applicant

Unspecified Financial

Unknown

—

1.r

The debt in SOR ¶ 1.r ($3,417) is the deficiency owed on a vehicle loan after the vehicle was voluntarily repossessed.

$3,417

For Applicant

Auto Loan Debt

Unknown

—

1.s

The debt in SOR ¶ 1.s ($1,239) is the amount past due on a vehicle loan.

$1,239

For Applicant

Auto Loan Debt

Unknown

—

1.t

The debt in SOR ¶ 1.t ($180) is a utility bill.

$180

For Applicant

Utility or Phone Debt

Unknown

—

1.u

The debt in SOR ¶ 1.u ($45) was for a returned check for school pictures.

$45

For Applicant

Unspecified Financial

Unknown

—

1.v

The debts in SOR ¶ 1.v ($235) and ¶ 1.w ($332) were originally from a retail store and are now with a collection company.

$567

For Applicant

Unspecified Financial

Unknown

—

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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