ISCR Case 14-04754.h1

Case Headnote

ISCR Case No. 14-04754.h1

grantedMay 15, 2015· Hon. Carol G. Ricciardello· hearing

Summary

A 53-year-old male applicant was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). His financial difficulties stemmed primarily from unemployment and his wife's medical issues. The Statement of Reasons detailed multiple debts, including a $29,849 debt, a $13,046 credit card debt, and a $10,006/$10,000 credit card debt that was listed twice.

Other debts included a $4,854 judgment settled in November 2014, a $14,773 credit card debt settled for $7,306, and a $22,019 debt charged-off in April 2014, for which an IRS Form 1099-C was filed. Additionally, two credit card debts totaling $7,866 and $3,238 were under active settlement negotiations within a credit consolidation plan. A $4,900 credit card debt, settled in October 2014, had a remaining balance of $2,238, with payments ongoing through the same plan. A $2,000 past-due rent debt was resolved using his security deposit.

The applicant successfully mitigated concerns by demonstrating responsible financial management. He engaged a credit consolidation company and established a systematic payment plan for his debts. The decision to grant the clearance was based on his proactive efforts to resolve his financial issues and the recognition that many of his problems arose from circumstances beyond his control.

Why the Applicant Prevailed

The applicant acted responsibly by seeking financial assistance from a credit consolidation company.
He has been systematically resolving his delinquent debts through a structured payment plan.
The applicant's financial problems were largely due to circumstances beyond his control, including his wife's medical condition.

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

Key Rule Quoted

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

Procedural Posture

SOR issuedJan 6, 2015
Answer filedJan 27, 2015
Hearing heldApr 30, 2015
Decision dateMay 15, 2015

Cite For

Mitigation of Financial Issues Under Guideline F Due to External Circumstances
Good-faith Efforts in Debt Resolution
Impact of 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 ($29,849) is included in the CCC payment agreement. $29,849	For Applicant	Unspecified Financial	Unknown	—	—	—
1.b	The debt in SOR ¶ 1.b ($13,046) is a credit card debt. $13,046	For Applicant	Credit Card Debt	Admitted	—	—	—
1.c	The debt in SOR ¶ 1.c ($10,006) and ¶ 1.g ($10,000) are the same account. It is a credit card debt. $10,006	For Applicant	Credit Card Debt	Unknown	—	—	—
1.d	The debt in SOR ¶ 1.d ($4,854) was reduced to a judgment that was settled and paid in November 2014. $4,854	For Applicant	Judgment Against Applicant	Unknown	—	—	—
1.e	A settlement agreement of $7,306 was reached for the credit card debt in SOR ¶ 1.e ($14,773). $14,773	For Applicant	Credit Card Debt	Unknown	—	—	—
1.f	The debt in SOR ¶ 1.f ($22,019) was charged-off in April 2014. Applicant received an Internal Revenue Service (IRS) Form 1099-C, cancellation of debt. It was filed with his federal income tax returns. It is resolved. $22,019	For Applicant	Tax Filing Failure	Unknown	—	—	—
1.g	The debt in SOR ¶ 1.c ($10,006) and ¶ 1.g ($10,000) are the same account. It is a credit card debt. $10,000	For Applicant	Credit Card Debt	Unknown	—	—	—
1.h	The debts in SOR ¶ 1.h ($7,866) and ¶ 1.i ($3,238) are credit card debts. Both are included in the CCC plan and active negotiations are ongoing to reach a settlement. $7,866	For Applicant	Credit Card Debt	Unknown	—	—	—
1.i	The debts in SOR ¶ 1.h ($7,866) and ¶ 1.i ($3,238) are credit card debts. Both are included in the CCC plan and active negotiations are ongoing to reach a settlement. $3,238	For Applicant	Credit Card Debt	Unknown	—	—	—
1.j	The debt in SOR ¶ 1.j ($4,900) is a credit card debt. A settlement was reached in October 2014, and Applicant has been making monthly payments through the CCC plan. The remaining balance is $2,238. $4,900	For Applicant	Credit Card Debt	Unknown	—	—	—
1.k	The debt in SOR ¶ 1.k ($2,000) is for past-due rent owed to Applicant’s landlord. Applicant fell behind when he was unemployed. He discussed the past-due debt with his landlord who agreed to use Applicant’s security deposit to cover the amount owed. $2,000	For Applicant	Unspecified Financial	Unknown	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

The debt in SOR ¶ 1.a ($29,849) is included in the CCC payment agreement.

$29,849

For Applicant

Unspecified Financial

Unknown

—

1.b

The debt in SOR ¶ 1.b ($13,046) is a credit card debt.

$13,046

For Applicant

Credit Card Debt

Admitted

—

1.c

The debt in SOR ¶ 1.c ($10,006) and ¶ 1.g ($10,000) are the same account. It is a credit card debt.

$10,006

For Applicant

Credit Card Debt

Unknown

—

1.d

The debt in SOR ¶ 1.d ($4,854) was reduced to a judgment that was settled and paid in November 2014.

$4,854

For Applicant

Judgment Against Applicant

Unknown

—

1.e

A settlement agreement of $7,306 was reached for the credit card debt in SOR ¶ 1.e ($14,773).

$14,773

For Applicant

Credit Card Debt

Unknown

—

1.f

The debt in SOR ¶ 1.f ($22,019) was charged-off in April 2014. Applicant received an Internal Revenue Service (IRS) Form 1099-C, cancellation of debt. It was filed with his federal income tax returns. It is resolved.

$22,019

For Applicant

Tax Filing Failure

Unknown

—

1.g

The debt in SOR ¶ 1.c ($10,006) and ¶ 1.g ($10,000) are the same account. It is a credit card debt.

$10,000

For Applicant

Credit Card Debt

Unknown

—

1.h

The debts in SOR ¶ 1.h ($7,866) and ¶ 1.i ($3,238) are credit card debts. Both are included in the CCC plan and active negotiations are ongoing to reach a settlement.

$7,866

For Applicant

Credit Card Debt

Unknown

—

1.i

The debts in SOR ¶ 1.h ($7,866) and ¶ 1.i ($3,238) are credit card debts. Both are included in the CCC plan and active negotiations are ongoing to reach a settlement.

$3,238

For Applicant

Credit Card Debt

Unknown

—

1.j

The debt in SOR ¶ 1.j ($4,900) is a credit card debt. A settlement was reached in October 2014, and Applicant has been making monthly payments through the CCC plan. The remaining balance is $2,238.

$4,900

For Applicant

Credit Card Debt

Unknown

—

1.k

The debt in SOR ¶ 1.k ($2,000) is for past-due rent owed to Applicant’s landlord. Applicant fell behind when he was unemployed. He discussed the past-due debt with his landlord who agreed to use Applicant’s security deposit to cover the amount owed.

$2,000

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

FOOTNOTES