ISCR Case 14-06507.h1

Case Headnote

ISCR Case No. 14-06507.h1

grantedFeb 9, 2016· Hon. Wilford H. Ross· hearing

Summary

A 36-year-old married woman employed by a defense contractor was granted a security clearance under Guideline F (Financial Considerations) despite admitting to multiple delinquent debts, including federal taxes and a prior bankruptcy filing. The Statement of Reasons detailed ten allegations related to outstanding financial obligations.

Specifically, the applicant owed $8,183 in back taxes to the IRS for the 2007 tax year, which had been reduced to $4,114.77 by July 2015. She secured a personal loan in August 2015 to pay off the remaining tax lien, with the IRS debt fully resolved by August 31, 2015. Other resolved debts included a $309 judgment paid in May 2015, a $650 bank credit card debt paid in December 2014, a $70 medical debt paid in October 2014, and a $3,917 debt for a repossessed automobile paid in May 2015. Additional smaller debts to a bank, a mobile telephone company, and another past-due account were also resolved between May 2014 and June 2015. The applicant also filed for Chapter 7 bankruptcy in October 2007, discharged in February 2008, which was deemed to have no current security significance.

The judge found that all delinquent debts listed in the Statement of Reasons had been successfully paid, with documentation provided for the IRS payment arrangement. The applicant's current financial situation was stable, evidenced by her ability to qualify for a mortgage, leading to the decision to grant her security clearance.

Why the Applicant Prevailed

Applicant successfully paid all delinquent debts listed in the SOR.
She provided documentation of a payment arrangement with the IRS, which was completed before the decision.
The applicant's current financial situation is stable, as evidenced by her ability to qualify for a mortgage.

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(c)appliedThere Are Clear Indications That the Problem Is Being Resolved or Is Under Control
AG ¶ 20(d)appliedThe Individual Has Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts

Key Rule Quoted

“Any doubt concerning personnel being considered for access to classified information will be resolved in favor of national security.”

Procedural Posture

SOR issuedMay 30, 2015
Answer filedJun 16, 2015Applicant requested a decision without a hearing.
Hearing held—No hearing was conducted.
Decision dateFeb 9, 2016

Cite For

Resolution of Multiple Delinquent Debts Under Guideline F
Demonstration of Financial Stability Post-bankruptcy
Application of Whole-person Concept 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	Applicant admitted that she owed the Internal Revenue Service (IRS) $8,183 in back taxes for the 2007 tax year. A tax lien was filed for that year. Applicant provided documentation showing that she had a payment arrangement with the IRS, and was successfully following it. As of July 2015 the back taxes had been reduced to $4,114.77. Applicant also provided documentation showing that she obtained a personal loan in August 2015 in a sufficient amount to pay off her remaining tax lien. She further states that the IRS was paid in full on August 31, 2015. (Answer at 4-8; Applicant Exhibit A at 1-13, 29-35.) This debt is resolved. $8,118	For Applicant	Tax Unpaid	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts (c) received/receiving counseling; problem being resolved	—
1.b	Applicant admitted that she owed a judgment in the amount of $309. She paid the judgment in full, including fees, on May 11, 2015. (Applicant Exhibit A at 47-48.) This debt is resolved. $309	For Applicant	Judgment Against Applicant	Admitted	—	—	—
1.c	Applicant admitted that she was indebted for a bank credit card in the amount of $650. This debt is the same as that set forth in allegation 1.h. Applicant showed proof of payment of this debt in December 2014. (Answer at 10-18.) This debt is resolved. $650	For Applicant	Credit Card Debt	Admitted	—	—	—
1.d	Applicant admitted that she was indebted for a medical debt in the amount of $70. Applicant showed proof of payment of this debt in October 2014. (Answer at 19-20.) This debt is resolved. $70	For Applicant	Medical Debt	Admitted	—	—	—
1.e	Applicant admitted owing a creditor $3,917 for a repossessed automobile. Applicant provided proof of payment of this debt in May 2015. (Answer at 21-24.) This debt is resolved. $3,917	For Applicant	Auto Loan Debt	Admitted	—	—	—
1.f	Applicant admitted owing a bank $70. Applicant provided proof of payment of this debt in May 2014. (Answer at 25-26.) This allegation is resolved. $70	For Applicant	Unspecified Financial	Admitted	—	—	—
1.g	Applicant admitted owing a mobile telephone company $148 on a past-due account. Applicant provided proof of payment of this debt in July 2014. (Answer at 27-28.) This allegation is resolved. $148	For Applicant	Utility or Phone Debt	Admitted	—	—	—
1.h	This debt has been discussed under subparagraph 1.c, above. This allegation is resolved.	For Applicant	Unspecified Financial	Unknown	—	—	—
1.i	Applicant admitted owing a past-due debt in the amount of $911. Applicant provided proof of payment of this debt in June 2015. (Answer at 29-30; Applicant Exhibit A at 60-61.) This allegation is resolved. $911	For Applicant	Unspecified Financial	Admitted	—	—	—
1.j	Applicant admits filing for Chapter 7 bankruptcy protection in October 2007. She was discharged of all of her dischargeable debts in February 2008. (Answer at 31.) Applicant has not filed for bankruptcy protection again. Under the particular circumstances of this case, the fact of her bankruptcy eight years ago has no current security significance.	For Applicant	Bankruptcy Filing	Admitted	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant admitted that she owed the Internal Revenue Service (IRS) $8,183 in back taxes for the 2007 tax year. A tax lien was filed for that year. Applicant provided documentation showing that she had a payment arrangement with the IRS, and was successfully following it. As of July 2015 the back taxes had been reduced to $4,114.77. Applicant also provided documentation showing that she obtained a personal loan in August 2015 in a sufficient amount to pay off her remaining tax lien. She further states that the IRS was paid in full on August 31, 2015. (Answer at 4-8; Applicant Exhibit A at 1-13, 29-35.) This debt is resolved.

$8,118

For Applicant

Tax Unpaid

Admitted

—

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

(c) received/receiving counseling; problem being resolved

—

1.b

Applicant admitted that she owed a judgment in the amount of $309. She paid the judgment in full, including fees, on May 11, 2015. (Applicant Exhibit A at 47-48.) This debt is resolved.

$309

For Applicant

Judgment Against Applicant

Admitted

—

1.c

Applicant admitted that she was indebted for a bank credit card in the amount of $650. This debt is the same as that set forth in allegation 1.h. Applicant showed proof of payment of this debt in December 2014. (Answer at 10-18.) This debt is resolved.

$650

For Applicant

Credit Card Debt

Admitted

—

1.d

Applicant admitted that she was indebted for a medical debt in the amount of $70. Applicant showed proof of payment of this debt in October 2014. (Answer at 19-20.) This debt is resolved.

$70

For Applicant

Medical Debt

Admitted

—

1.e

Applicant admitted owing a creditor $3,917 for a repossessed automobile. Applicant provided proof of payment of this debt in May 2015. (Answer at 21-24.) This debt is resolved.

$3,917

For Applicant

Auto Loan Debt

Admitted

—

1.f

Applicant admitted owing a bank $70. Applicant provided proof of payment of this debt in May 2014. (Answer at 25-26.) This allegation is resolved.

$70

For Applicant

Unspecified Financial

Admitted

—

1.g

Applicant admitted owing a mobile telephone company $148 on a past-due account. Applicant provided proof of payment of this debt in July 2014. (Answer at 27-28.) This allegation is resolved.

$148

For Applicant

Utility or Phone Debt

Admitted

—

1.h

This debt has been discussed under subparagraph 1.c, above. This allegation is resolved.

For Applicant

Unspecified Financial

Unknown

—

1.i

Applicant admitted owing a past-due debt in the amount of $911. Applicant provided proof of payment of this debt in June 2015. (Answer at 29-30; Applicant Exhibit A at 60-61.) This allegation is resolved.

$911

For Applicant

Unspecified Financial

Admitted

—

1.j

Applicant admits filing for Chapter 7 bankruptcy protection in October 2007. She was discharged of all of her dischargeable debts in February 2008. (Answer at 31.) Applicant has not filed for bankruptcy protection again. Under the particular circumstances of this case, the fact of her bankruptcy eight years ago has no current security significance.

For Applicant

Bankruptcy Filing

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