ISCR Case 15-00841.h1

Case Headnote

ISCR Case No. 15-00841.h1

grantedMay 12, 2016· Hon. LeRoy F. Foreman· hearing

Summary

A 53-year-old network security operations manager and retired U.S. Army Reserve colonel was granted a security clearance despite concerns under Guideline F (Financial Considerations). The applicant faced allegations regarding multiple delinquent debts, including a $120 medical bill, a $1,036 charged-off credit card, a $448 charged-off credit card, a $269 collection account for a telephone bill, a $234 medical bill, and a $143 charged-off telephone bill. Additionally, he had a second mortgage past due for $15,954 and a home-mortgage loan in foreclosure with a balance of about $440,910. Another charged-off account with a high balance of $169 was also noted.

The applicant demonstrated that many of these financial issues arose from circumstances largely beyond his control, specifically a contentious divorce and deployments to combat zones, including Afghanistan. For instance, the $120 medical bill became delinquent in January 2011 and was placed for collection in February 2013 while he was deployed. The $1,036 credit card became delinquent in June 2012, also during his deployment.

The judge found that the applicant made significant good-faith efforts to resolve his debts. He paid the $120 medical bill in February 2016, the $1,036 credit card in June 2015, the $448 credit card in May 2015, the $269 telephone bill in February 2016, the $234 medical bill in May 2015, and the $143 telephone bill in February 2016. His financial situation was also expected to improve with the end of spousal support and the start of military retirement pay.

Why the Applicant Prevailed

The applicant demonstrated that his financial difficulties were largely due to circumstances beyond his control, including deployment and a contentious divorce.
He made good-faith efforts to resolve his debts, including paying off several delinquent accounts and maintaining communication with creditors.
The applicant's financial situation was expected to improve significantly with the termination of his spousal support obligation and the commencement of his military retirement pay.

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 Largely Beyond the Person's Control
AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue Creditors
AG ¶ 20(c)appliedReceived Counseling for the Problem

Key Rule Quoted

“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the AG.”

Procedural Posture

SOR issuedAug 20, 2015
Answer filedSep 22, 2015
Hearing heldFeb 5, 2016
Decision dateMay 12, 2016

Cite For

Mitigating Conditions Under Guideline F Due to Circumstances Beyond Control
Good-faith Efforts to Resolve Financial Issues
Impact of Personal Circumstances on Financial Obligations

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	medical bill for $120. This debt became delinquent in January 2011. It was placed for collection in February 2013, while Applicant was deployed to Afghanistan. Applicant paid the debt in full on February 2, 2016. $120	For Applicant	Medical Debt	Admitted	—	—	—
1.b	second mortgage on marital home, past due for $15,954; and home-mortgage loan in foreclosure with a balance of about $440,910. $15,954	For Applicant	Mortgage or Home Loan Debt	Denied	—	—	—
1.c	credit-card account charged off for about $1,036. This joint account was opened by Applicant and his ex-wife in August 2000. It first became delinquent in June 2012, while Applicant was in Afghanistan. Applicant paid this account in full in June 2015. $1,036	For Applicant	Credit Card Debt	Admitted	—	—	—
1.d	charged-off account, no account number, description of the debt, date, or amount alleged. This debt is reflected in Applicant’s CBRs as disputed with a high balance of $169, closed by credit grantor, and paid after being charged off. $169	For Applicant	Unspecified Financial	Denied	—	—	—
1.e	specific text not stated in this decision	For Applicant	Unspecified Financial	Unknown	—	—	—
1.f	charged-off debt for $448, no account number, description of account, or date alleged. This account is a credit-card account. Applicant paid the debt in full in May 2015. $448	For Applicant	Credit Card Debt	Denied	—	—	—
1.g	collection account for $269, no account number, date, or description of the debt alleged. This debt is a telephone bill referred for collection in January 2014. Applicant paid the debt in full on February 1, 2016. $269	For Applicant	Utility or Phone Debt	Denied	—	—	—
1.h	medical bill referred for collection for $234. This debt was referred for collection in March 2012. Applicant paid this debt in May 2015. $234	For Applicant	Medical Debt	Unknown	—	—	—
1.i	charged-off telephone bill for $143. This debt was referred for collection in January 2012. Applicant paid it in full on February 2, 2016, even though he was not sure it was his debt. $143	For Applicant	Utility or Phone Debt	Unknown	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

medical bill for $120. This debt became delinquent in January 2011. It was placed for collection in February 2013, while Applicant was deployed to Afghanistan. Applicant paid the debt in full on February 2, 2016.

$120

For Applicant

Medical Debt

Admitted

—

1.b

second mortgage on marital home, past due for $15,954; and home-mortgage loan in foreclosure with a balance of about $440,910.

$15,954

For Applicant

Mortgage or Home Loan Debt

Denied

—

1.c

credit-card account charged off for about $1,036. This joint account was opened by Applicant and his ex-wife in August 2000. It first became delinquent in June 2012, while Applicant was in Afghanistan. Applicant paid this account in full in June 2015.

$1,036

For Applicant

Credit Card Debt

Admitted

—

1.d

charged-off account, no account number, description of the debt, date, or amount alleged. This debt is reflected in Applicant’s CBRs as disputed with a high balance of $169, closed by credit grantor, and paid after being charged off.

$169

For Applicant

Unspecified Financial

Denied

—

1.e

specific text not stated in this decision

For Applicant

Unspecified Financial

Unknown

—

1.f

charged-off debt for $448, no account number, description of account, or date alleged. This account is a credit-card account. Applicant paid the debt in full in May 2015.

$448

For Applicant

Credit Card Debt

Denied

—

1.g

collection account for $269, no account number, date, or description of the debt alleged. This debt is a telephone bill referred for collection in January 2014. Applicant paid the debt in full on February 1, 2016.

$269

For Applicant

Utility or Phone Debt

Denied

—

1.h

medical bill referred for collection for $234. This debt was referred for collection in March 2012. Applicant paid this debt in May 2015.

$234

For Applicant

Medical Debt

Unknown

—

1.i

charged-off telephone bill for $143. This debt was referred for collection in January 2012. Applicant paid it in full on February 2, 2016, even though he was not sure it was his debt.

$143

For Applicant

Utility or Phone Debt

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