ISCR Case 15-00231.h1

Case Headnote

ISCR Case No. 15-00231.h1

grantedFeb 3, 2016· Hon. Mary E. Henry· hearing

Summary

A 36-year-old electrician for a DOD contractor was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The Statement of Reasons (SOR) detailed three specific financial issues. One allegation involved a $20,381 debt for a modular home, which the applicant believed his name had been removed from after separating from the mother of his children. He became aware of the outstanding debt when the creditor pursued payment after his former partner filed for bankruptcy in 2013.

Another concern was a child support arrearage of $11,773. However, documentation showed that since June 2014, $351 has been deducted biweekly from his pay, covering both current child support and the arrearage. Between June 2014 and November 2015, he paid approximately $12,705 towards this obligation. The final allegation concerned a $163 energy debt from 2009, which the applicant paid in full in August 2015 after learning of it during an OPM investigation.

The judge determined that the applicant's financial problems were largely beyond his control, citing factors such as unemployment and his former partner's bankruptcy. The applicant demonstrated a good faith effort to repay overdue creditors and resolve debts, including a consistent track record of child support payments. Consequently, the security clearance was granted.

Why the Applicant Prevailed

The applicant demonstrated a good faith effort to repay overdue creditors and resolve debts.
The financial issues were largely beyond the applicant's control, including unemployment and a former partner's bankruptcy.
The applicant has shown a track record of making timely child support payments and addressing other debts.

Conditions Referenced

Disqualifying

F.1.araisedInability or Unwillingness to Satisfy Debts
F.1.craisedA History of Not Meeting Financial Obligations

Mitigating

F.2.bappliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
F.2.cnotedThe 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.2.dappliedThe 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 issuedJul 25, 2015
Answer filedAug 5, 2015Requested decision on the written record.
Hearing held—No hearing; decision based on written record.
Decision dateFeb 3, 2016

Cite For

Mitigation of Financial Issues Under Guideline F
Consideration of Circumstances Beyond the Applicant's Control
Good Faith Efforts to Resolve Debts as a Mitigating Factor

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 SOR identifies three debts totaling $32,217. Applicant lived in a modular home with the mother of his children. After they separated, she continued to live in the home with the children. Applicant believed his name had been removed from the loan and was not aware that the modular home was vacant until he met with the OPM investigator. In 2013, the mother of his children filed for bankruptcy. As a result, the creditor is seeking payment of the remaining debt (1.a $20,381) from him. He is considering filing bankruptcy to discharge this debt only, but he has not contacted an attorney because of his work schedule. $20,381	For Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Claimed Other
1.b	SOR allegation 1.b relates to Applicant’s child support arrearage of $11,773. Applicant’s documentation shows that beginning with his first paycheck in June 2014 from his current employment, child support payments of $351 have been deducted from his biweekly pay. These payments include his regular monthly child support payments and his arrearage. Between June 2014 and November 2015, Applicant paid approximately $12,705 towards his monthly child support and his arrearage. He was unable to obtain a statement from the state agency on the amount remaining on his debt. $11,773	For Applicant	Child Support Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Claimed Other
1.c	The last SOR allegation (1.c) concerns a 2009 debt of $163 for energy for the modular home. He was unaware of the debt until he met with the OPM investigator. Applicant paid this debt in full in August 2015. $163	For Applicant	Utility or Phone Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

The SOR identifies three debts totaling $32,217. Applicant lived in a modular home with the mother of his children. After they separated, she continued to live in the home with the children. Applicant believed his name had been removed from the loan and was not aware that the modular home was vacant until he met with the OPM investigator. In 2013, the mother of his children filed for bankruptcy. As a result, the creditor is seeking payment of the remaining debt (1.a $20,381) from him. He is considering filing bankruptcy to discharge this debt only, but he has not contacted an attorney because of his work schedule.

$20,381

For Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

(c) received/receiving counseling; problem being resolved

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

Claimed

Other

1.b

SOR allegation 1.b relates to Applicant’s child support arrearage of $11,773. Applicant’s documentation shows that beginning with his first paycheck in June 2014 from his current employment, child support payments of $351 have been deducted from his biweekly pay. These payments include his regular monthly child support payments and his arrearage. Between June 2014 and November 2015, Applicant paid approximately $12,705 towards his monthly child support and his arrearage. He was unable to obtain a statement from the state agency on the amount remaining on his debt.

$11,773

For Applicant

Child Support Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

(c) received/receiving counseling; problem being resolved

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

Claimed

Other

1.c

The last SOR allegation (1.c) concerns a 2009 debt of $163 for energy for the modular home. He was unaware of the debt until he met with the OPM investigator. Applicant paid this debt in full in August 2015.

$163

For Applicant

Utility or Phone Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

(c) received/receiving counseling; problem being resolved

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

Documented

Debt Paid in Full

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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