ISCR Case 14-04191.h1

Case Headnote

ISCR Case No. 14-04191.h1

grantedDec 23, 2015· Hon. Wilford H. Ross· hearing

Summary

A 52-year-old defense contractor and former Coast Guard member was granted a security clearance despite allegations under Guideline F (Financial Considerations) concerning over $40,000 in delinquent debts. The applicant admitted to the debts, which included past-due mortgage, student loan, and credit card obligations.

The applicant demonstrated a responsible approach to resolving these financial issues. For instance, a $3,232 mortgage debt and several student loans totaling $764, $453, and $558 were made current. A $5,233 credit card debt and a $6,470 student loan were being resolved through regular monthly payments. A $6,398 debt to a credit union was forgiven, and the applicant properly reported it as income. Additionally, a $2,042 credit card debt was paid and resolved, and two student loan debts totaling $8,715 and $6,986 were identified as duplicates of other listed obligations.

The judge found that the applicant's financial difficulties were largely due to personal circumstances beyond his control, such as medical issues and family deaths. The applicant provided evidence of a budget plan demonstrating his ability to manage current bills and debt payments. Given these mitigating factors and the applicant's efforts to address his debts, the security clearance was granted.

Why the Applicant Prevailed

The applicant demonstrated a responsible approach to resolving his financial issues, including current payments on debts.
The applicant's financial difficulties were largely due to personal circumstances beyond his control, such as medical issues and family deaths.
The applicant provided evidence of a budget plan showing the ability to manage current bills and debt payments.

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 so Long Ago, Was Infrequent, or Unlikely to Recur
AG ¶ 20(b)appliedConditions That Resulted in Financial Problems Were Largely Beyond the Person's Control
AG ¶ 20(d)appliedInitiated a Good-faith Effort to Repay Overdue Creditors or Resolve Debts

Key Rule Quoted

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

Procedural Posture

SOR issuedOct 8, 2014
Answer filedOct 31, 2014Applicant requested a decision without a hearing.
Hearing held—Decision made based on written submissions.
Decision dateDec 23, 2015

Cite For

Mitigating Conditions Under Guideline F for Financial Considerations
Impact of Personal Circumstances on Financial Issues
Evidence of a Reasonable Plan to Resolve Debts

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 admitted owing this past-due mortgage debt in the amount of $3,232. He submitted documentation showing that this debt is current as of May 2015, when the record closed. $3,232	For Applicant	Mortgage or Home Loan Debt	Admitted	—	—	—
1.b	Applicant admitted owing this past-due student loan debt in the amount of $764. The Government acknowledges that this account is current and in good standing. $764	For Applicant	Student Loan Debt	Admitted	—	—	—
1.c	Applicant admitted owing this past-due debt for a credit card in the amount of $5,233. He made an arrangement with the credit card company to make monthly payments to resolve the debt, and submitted documentary evidence that he has been making regular payments since January 2015. $5,233	For Applicant	Credit Card Debt	Admitted	—	—	—
1.d	Applicant admitted owing this past-due student loan debt in the amount of $453. The Government acknowledges that this student loan account is current and in good standing. $453	For Applicant	Student Loan Debt	Admitted	—	—	—
1.e	Applicant admitted owing this past-due student loan debt in the amount of $558. He submitted documentation showing that this was part of the student loan set forth under 1.d, above. He submitted evidence that he has a repayment agreement for this student loan, and it is current as of June 2015. $558	For Applicant	Student Loan Debt	Admitted	—	—	—
1.f	Applicant admitted owing this past-due student loan debt in the amount of $6,470. He made an arrangement with the original lender to make monthly payments to resolve the debt, and submitted documentary evidence that he has been making regular payments since October 2014. $6,470	For Applicant	Student Loan Debt	Admitted	—	—	—
1.g	Applicant admitted owing a past-due debt to a credit union in the amount of $6,398. The creditor forgave the debt in 2013 and supplied Applicant with an IRS Form 1099. Applicant supplied documentation showing that he properly reported the cancellation of debt as income on his 2013 tax return. $6,398	For Applicant	Unspecified Financial	Admitted	—	—	—
1.h	Applicant admitted owing this past-due student loan debt in the amount of $8,715. However, he further submits that it is a duplicate of the student loan debt set forth in subparagraphs 1.b and 1.d. After reviewing the documentation submitted by Applicant in this regard, I agree. $8,715	For Applicant	Student Loan Debt	Admitted	—	—	—
1.i	Applicant admitted owing this past-due credit card debt in the amount of $2,042. The Government acknowledges that this debt has been paid and resolved. $2,042	For Applicant	Credit Card Debt	Admitted	—	—	—
1.j	Applicant admitted owing this past-due student loan debt in the amount of $6,986. However, he further submits that it is a duplicate of the student loan debt set forth in subparagraphs 1.b. and 1.d. After reviewing the documentation submitted by Applicant in this regard, I agree. $6,986	For Applicant	Student Loan Debt	Admitted	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant admitted owing this past-due mortgage debt in the amount of $3,232. He submitted documentation showing that this debt is current as of May 2015, when the record closed.

$3,232

For Applicant

Mortgage or Home Loan Debt

Admitted

—

1.b

Applicant admitted owing this past-due student loan debt in the amount of $764. The Government acknowledges that this account is current and in good standing.

$764

For Applicant

Student Loan Debt

Admitted

—

1.c

Applicant admitted owing this past-due debt for a credit card in the amount of $5,233. He made an arrangement with the credit card company to make monthly payments to resolve the debt, and submitted documentary evidence that he has been making regular payments since January 2015.

$5,233

For Applicant

Credit Card Debt

Admitted

—

1.d

Applicant admitted owing this past-due student loan debt in the amount of $453. The Government acknowledges that this student loan account is current and in good standing.

$453

For Applicant

Student Loan Debt

Admitted

—

1.e

Applicant admitted owing this past-due student loan debt in the amount of $558. He submitted documentation showing that this was part of the student loan set forth under 1.d, above. He submitted evidence that he has a repayment agreement for this student loan, and it is current as of June 2015.

$558

For Applicant

Student Loan Debt

Admitted

—

1.f

Applicant admitted owing this past-due student loan debt in the amount of $6,470. He made an arrangement with the original lender to make monthly payments to resolve the debt, and submitted documentary evidence that he has been making regular payments since October 2014.

$6,470

For Applicant

Student Loan Debt

Admitted

—

1.g

Applicant admitted owing a past-due debt to a credit union in the amount of $6,398. The creditor forgave the debt in 2013 and supplied Applicant with an IRS Form 1099. Applicant supplied documentation showing that he properly reported the cancellation of debt as income on his 2013 tax return.

$6,398

For Applicant

Unspecified Financial

Admitted

—

1.h

Applicant admitted owing this past-due student loan debt in the amount of $8,715. However, he further submits that it is a duplicate of the student loan debt set forth in subparagraphs 1.b and 1.d. After reviewing the documentation submitted by Applicant in this regard, I agree.

$8,715

For Applicant

Student Loan Debt

Admitted

—

1.i

Applicant admitted owing this past-due credit card debt in the amount of $2,042. The Government acknowledges that this debt has been paid and resolved.

$2,042

For Applicant

Credit Card Debt

Admitted

—

1.j

Applicant admitted owing this past-due student loan debt in the amount of $6,986. However, he further submits that it is a duplicate of the student loan debt set forth in subparagraphs 1.b. and 1.d. After reviewing the documentation submitted by Applicant in this regard, I agree.

$6,986

For Applicant

Student Loan Debt

Admitted

—

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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