ISCR Case 15-00731.h1

Case Headnote

ISCR Case No. 15-00731.h1

grantedJun 20, 2016· Hon. Noreen A. Lynch· hearing

Summary

A 44-year-old system administrator for a defense contractor was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The applicant admitted to approximately $31,000 in delinquent debts, which arose primarily from her husband's health issues and broader economic downturns. Disqualifying conditions were raised under Adjudicative Guidelines Paragraphs 19(a) and 19(c).

However, the applicant demonstrated significant efforts to resolve her financial issues. Specific actions included establishing repayment plans for a university loan, a collection account for a computer, a credit card, and a charged-off account. She also consolidated a past-due student loan through a federal program, paid a $40 medical bill, and settled another delinquent debt for $235. A home equity loan from 2007-2008, which she could no longer pay, had its lien forgiven by the mortgage company in 2015. Additionally, a credit card collection account was removed from her credit reports, and she established a payment plan for an undergraduate student loan after a period of forbearance and default.

The judge applied mitigating conditions under Adjudicative Guidelines Paragraphs 20(b), 20(d), and 20(f), finding that the applicant's financial difficulties were largely beyond her control. Her current financial stability, responsible actions to address her debts, and a long history of reliable employment with positive performance evaluations ultimately led to the security clearance being granted.

Why the Applicant Prevailed

The applicant provided evidence of a stable financial situation and a plan to address outstanding debts.
She demonstrated that her financial issues were largely due to circumstances beyond her control, including her husband's health and economic downturns.
The applicant has a long history of reliable employment and has received positive performance evaluations.

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(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
AG ¶ 20(f)appliedThe Affluence Resulted From a Legal Source of Income

Key Rule Quoted

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

Procedural Posture

SOR issuedAug 6, 2015
Answer filed—
Hearing heldMay 20, 2016
Decision dateJun 20, 2016

Cite For

Mitigating Conditions Under Guideline F Due to Circumstances Beyond Control
Good-faith Efforts to Resolve Financial Issues
Importance of Stable Employment History 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–1.b	2 sub-charges — specific text not stated in this decision (for the applicant).	For Applicant			—	—	—
1.c	a loan from a university in the amount of $1,929, is in a repayment plan. She makes monthly payments of $64.25, which are directly debited from her checking account. $1,929	For Applicant	Student Loan 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 (d) good-faith effort to repay or otherwise resolve debts	—
1.d	specific text not stated in this decision	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 (d) good-faith effort to repay or otherwise resolve debts	—
1.e	for a medical bill in the amount of $40, which was overlooked by Applicant, it was paid last year. $40	For Applicant	Medical 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 (d) good-faith effort to repay or otherwise resolve debts	—
1.f	for a student loan that is 180 days or more past due in the amount of $1,765, Applicant has recently consolidated the loan through a federal program. $1,765	For Applicant	Student Loan 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 (d) good-faith effort to repay or otherwise resolve debts	—
1.g	for a collection account in the amount of $5,891, this was for a computer account. It was bought by another agency. Applicant notes the original amount was approximately $3,000. She has a repayment plan with the current collector. $5,891	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 (d) good-faith effort to repay or otherwise resolve debts	—
1.h	for a home equity loan in the amount of $15,688, payments were made from 2007 to 2008 to the creditor, but eventually Applicant could not pay. She tried for a while to make other arrangements. In 2015, the mortgage company forgave the lien securing the mortgage. $15,688	For Applicant	Mortgage or Home Loan 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 (d) good-faith effort to repay or otherwise resolve debts	—
1.i	for a credit card in the amount of $1,454, Applicant has a payment plan agreement of $72 over six months. Two payments have been made. $1,454	For Applicant	Credit Card 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 (d) good-faith effort to repay or otherwise resolve debts	—
1.j	for a collection account for an undetermined amount, the credit card account has been removed from Applicant’s credit reports.	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 (d) good-faith effort to repay or otherwise resolve debts	—
1.k	for a charged-off account in an undetermined amount, this was a credit card opened in 2007. Applicant has a payment plan with them. Her monthly amount is $50.	For Applicant	Credit Card 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 (d) good-faith effort to repay or otherwise resolve debts	—
1.l	for a delinquent debt in an undetermined amount, Applicant has a payment arrangement. She has settled the account for $235.	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 (d) good-faith effort to repay or otherwise resolve debts	—
1.m	for a student loan from Applicant’s undergraduate days, she had a forbearance but defaulted. She now has a plan to pay $167 a month.	For Applicant	Student Loan 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 (d) good-faith effort to repay or otherwise resolve debts	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a–1.b

2 sub-charges — specific text not stated in this decision (for the applicant).

For Applicant

—

1.c

a loan from a university in the amount of $1,929, is in a repayment plan. She makes monthly payments of $64.25, which are directly debited from her checking account.

$1,929

For Applicant

Student Loan 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

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

—

1.d

specific text not stated in this decision

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

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

—

1.e

for a medical bill in the amount of $40, which was overlooked by Applicant, it was paid last year.

$40

For Applicant

Medical 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

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

—

1.f

for a student loan that is 180 days or more past due in the amount of $1,765, Applicant has recently consolidated the loan through a federal program.

$1,765

For Applicant

Student Loan 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

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

—

1.g

for a collection account in the amount of $5,891, this was for a computer account. It was bought by another agency. Applicant notes the original amount was approximately $3,000. She has a repayment plan with the current collector.

$5,891

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

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

—

1.h

for a home equity loan in the amount of $15,688, payments were made from 2007 to 2008 to the creditor, but eventually Applicant could not pay. She tried for a while to make other arrangements. In 2015, the mortgage company forgave the lien securing the mortgage.

$15,688

For Applicant

Mortgage or Home Loan 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

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

—

1.i

for a credit card in the amount of $1,454, Applicant has a payment plan agreement of $72 over six months. Two payments have been made.

$1,454

For Applicant

Credit Card 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

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

—

1.j

for a collection account for an undetermined amount, the credit card account has been removed from Applicant’s credit reports.

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

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

—

1.k

for a charged-off account in an undetermined amount, this was a credit card opened in 2007. Applicant has a payment plan with them. Her monthly amount is $50.

For Applicant

Credit Card 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

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

—

1.l

for a delinquent debt in an undetermined amount, Applicant has a payment arrangement. She has settled the account for $235.

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

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

—

1.m

for a student loan from Applicant’s undergraduate days, she had a forbearance but defaulted. She now has a plan to pay $167 a month.

For Applicant

Student Loan 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

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

—

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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