ISCR Case 14-02810.h1

Case Headnote

ISCR Case No. 14-02810.h1

grantedJan 1, 2015· Hon. Robert Robinson Gales· hearing

Summary

This case concerns a 46-year-old defense contractor employee seeking to retain her eligibility for a public trust position under Guideline F (Financial Considerations). The Statement of Reasons detailed several financial allegations. These included a home mortgage and associated line of credit that resulted in a short sale and a subsequent collection account for $1,328, which was later sold to a debt purchaser. After the hearing, the applicant established a partial repayment plan for this account, agreeing to pay $664.45 on December 26, 2014.

Additionally, the applicant faced collection for 11 medical accounts that she disputed due to unknown medical providers, and 4 other medical accounts also placed for collection. Disqualifying conditions under Guideline F, specifically AG ¶ 19(a) and AG ¶ 19(c), were raised.

However, the decision was GRANTED, with mitigating conditions AG ¶ 20(b), AG ¶ 20(c), and AG ¶ 20(d) applied. The applicant demonstrated a significant improvement in her financial situation before the hearing and showed a commitment to resolving her debts, including initiating repayment plans. The financial difficulties were largely attributed to circumstances beyond her control, such as medical emergencies and economic downturns.

Why the Applicant Prevailed

The applicant provided evidence of a significant improvement in her financial situation prior to the hearing.
She demonstrated a commitment to resolving her debts and had initiated repayment plans for some accounts.
The financial difficulties were largely attributed to circumstances beyond her control, including medical emergencies and economic downturns.

Conditions Referenced

Disqualifying

AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations

Mitigating

AG ¶ 20(b)appliedConditions Largely Beyond the Person's Control
AG ¶ 20(c)appliedEvidence of Counseling or Resolution of Financial Problems
AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue Creditors

Key Rule Quoted

“The standard that must be met for . . . assignment to sensitive duties is that, based on all available information, the person’s loyalty, reliability, and trustworthiness are such that . . . assigning the person to sensitive duties is clearly consistent with the interests of national security.”
— Department of Defense v. Egan, 484 U.S. 518 (1988)

Procedural Posture

SOR issuedJul 22, 2014
Answer filedAug 1, 2014
Hearing heldNov 19, 2014
Decision dateJanuary 0, 2015

Cite For

Mitigation of Financial Issues Under Guideline F
Impact of Personal Circumstances on Financial Stability
Good-faith Efforts in 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	Applicant had a home mortgage account and an associated line of credit on a credit card. The residence was in a pre-foreclosure status when Applicant was able to sell it with a short sale, thereby resolving the delinquent mortgage. Applicant contends the line of credit, with an unpaid balance of $1,328, should have been resolved when the residence was sold. It apparently was not. The account was placed for collection in 2012, and subsequently sold to a debt purchaser. Applicant made no effort to resolve the account before the hearing, but after the hearing she contacted the debt purchaser and set up a partial repayment plan under which she agreed to pay $664.45 on December 26, 2014. $1,328	For Applicant	Unspecified Financial	Denied	—	—	—
1.b	There are 11 medical accounts that were placed for collection. Applicant disputed these accounts because she did not know the identity of the medical providers. $1,349	For Applicant	Medical Debt	Admitted	—	—	—
1.c	There are 11 medical accounts that were placed for collection. Applicant disputed these accounts because she did not know the identity of the medical providers. $422	For Applicant	Medical Debt	Admitted	—	—	—
1.d	There are 11 medical accounts that were placed for collection. Applicant disputed these accounts because she did not know the identity of the medical providers. $366	For Applicant	Medical Debt	Admitted	—	—	—
1.e	There are 11 medical accounts that were placed for collection. Applicant disputed these accounts because she did not know the identity of the medical providers. $289	For Applicant	Medical Debt	Admitted	—	—	—
1.f	There are 4 other medical accounts that were also placed for collection. $147	For Applicant	Medical Debt	Admitted	—	—	—
1.g	There are 11 medical accounts that were placed for collection. Applicant disputed these accounts because she did not know the identity of the medical providers. $143	For Applicant	Medical Debt	Admitted	—	—	—
1.h	There are 11 medical accounts that were placed for collection. Applicant disputed these accounts because she did not know the identity of the medical providers. $90	For Applicant	Medical Debt	Admitted	—	—	—
1.i	There are 11 medical accounts that were placed for collection. Applicant disputed these accounts because she did not know the identity of the medical providers. $59	For Applicant	Medical Debt	Admitted	—	—	—
1.j	There are 4 other medical accounts that were also placed for collection. $53	For Applicant	Medical Debt	Admitted	—	—	—
1.k	There are 11 medical accounts that were placed for collection. Applicant disputed these accounts because she did not know the identity of the medical providers. $246	For Applicant	Medical Debt	Admitted	—	—	—
1.l	There are 4 other medical accounts that were also placed for collection. $2,003	For Applicant	Medical Debt	Admitted	—	—	—
1.m	There are 11 medical accounts that were placed for collection. Applicant disputed these accounts because she did not know the identity of the medical providers. $147	For Applicant	Medical Debt	Admitted	—	—	—
1.n	There are 11 medical accounts that were placed for collection. Applicant disputed these accounts because she did not know the identity of the medical providers. $1,329	For Applicant	Medical Debt	Admitted	—	—	—
1.o	There are 4 other medical accounts that were also placed for collection. $489	For Applicant	Medical Debt	Admitted	—	—	—
1.p	There are 11 medical accounts that were placed for collection. Applicant disputed these accounts because she did not know the identity of the medical providers. $95	For Applicant	Medical Debt	Admitted	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant had a home mortgage account and an associated line of credit on a credit card. The residence was in a pre-foreclosure status when Applicant was able to sell it with a short sale, thereby resolving the delinquent mortgage. Applicant contends the line of credit, with an unpaid balance of $1,328, should have been resolved when the residence was sold. It apparently was not. The account was placed for collection in 2012, and subsequently sold to a debt purchaser. Applicant made no effort to resolve the account before the hearing, but after the hearing she contacted the debt purchaser and set up a partial repayment plan under which she agreed to pay $664.45 on December 26, 2014.

$1,328

For Applicant

Unspecified Financial

Denied

—

1.b

There are 11 medical accounts that were placed for collection. Applicant disputed these accounts because she did not know the identity of the medical providers.

$1,349

For Applicant

Medical Debt

Admitted

—

1.c

There are 11 medical accounts that were placed for collection. Applicant disputed these accounts because she did not know the identity of the medical providers.

$422

For Applicant

Medical Debt

Admitted

—

1.d

There are 11 medical accounts that were placed for collection. Applicant disputed these accounts because she did not know the identity of the medical providers.

$366

For Applicant

Medical Debt

Admitted

—

1.e

There are 11 medical accounts that were placed for collection. Applicant disputed these accounts because she did not know the identity of the medical providers.

$289

For Applicant

Medical Debt

Admitted

—

1.f

There are 4 other medical accounts that were also placed for collection.

$147

For Applicant

Medical Debt

Admitted

—

1.g

There are 11 medical accounts that were placed for collection. Applicant disputed these accounts because she did not know the identity of the medical providers.

$143

For Applicant

Medical Debt

Admitted

—

1.h

There are 11 medical accounts that were placed for collection. Applicant disputed these accounts because she did not know the identity of the medical providers.

$90

For Applicant

Medical Debt

Admitted

—

1.i

There are 11 medical accounts that were placed for collection. Applicant disputed these accounts because she did not know the identity of the medical providers.

$59

For Applicant

Medical Debt

Admitted

—

1.j

There are 4 other medical accounts that were also placed for collection.

$53

For Applicant

Medical Debt

Admitted

—

1.k

There are 11 medical accounts that were placed for collection. Applicant disputed these accounts because she did not know the identity of the medical providers.

$246

For Applicant

Medical Debt

Admitted

—

1.l

There are 4 other medical accounts that were also placed for collection.

$2,003

For Applicant

Medical Debt

Admitted

—

1.m

There are 11 medical accounts that were placed for collection. Applicant disputed these accounts because she did not know the identity of the medical providers.

$147

For Applicant

Medical Debt

Admitted

—

1.n

There are 11 medical accounts that were placed for collection. Applicant disputed these accounts because she did not know the identity of the medical providers.

$1,329

For Applicant

Medical Debt

Admitted

—

1.o

There are 4 other medical accounts that were also placed for collection.

$489

For Applicant

Medical Debt

Admitted

—

1.p

There are 11 medical accounts that were placed for collection. Applicant disputed these accounts because she did not know the identity of the medical providers.

$95

For Applicant

Medical Debt

Admitted

—

Loading case…

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