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ISCR Case 01-00425.h1 — CASE

Case record

ISCR Case 01-00425.h1

A decided public DOHA case, shown for research — not advice or a prediction.

Case Profile
Decision Date1/22/2002
Statusgranted
LevelHEARING
TypeSTANDARD ISCR
Participants
Judge: William R. Kearney
Applicant Representation: Pro Se
Case Summary
The judge found that the applicant had a history of financial difficulties primarily related to her corporation, which led to a Chapter 13 bankruptcy filing. However, the applicant successfully settled her debts and demonstrated a good faith effort to resolve her financial obligations, resulting in a decision to grant her security clearance.
Guidelines Evaluated
- Guideline FFinancial Considerations · Unknown Outcome
Similar decisions
Other decisions whose allegations read most like this one. Descriptive similarity of the allegations only — not a prediction.
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Case Headnote

ISCR Case No. 01-00425.h1

grantedJan 22, 2002· Hon. William R. Kearney· hearing

Summary

A 46-year-old former corporate owner, whose company held U.S. Government contracts, was granted a security clearance despite financial considerations under Guideline F. The Applicant had filed for Chapter 13 bankruptcy due to financial difficulties, which was later dismissed after she settled a dispute with the government and resolved all corporate debts.

The Statement of Reasons detailed several financial allegations. These included an unexplained corporate wireless bill, a $653 charge from a wireless company that remained on her credit report despite being paid and removed from her account, and an additional corporate subcontracting bill of a larger amount that was removed from her account after attorney discussions but remained on her credit report. Other issues involved a $95 daycare debt she paid in cash but lacked written proof of resolution, and a $5,597 judgment from a home furnishing company that she settled, leading to its dismissal.

The Administrative Judge found that the Applicant's financial issues were largely beyond her control, stemming from a business downturn. She demonstrated good faith efforts to repay and resolve her debts, including successfully settling all corporate obligations. Consequently, the Judge applied mitigating conditions and granted her security clearance.

Why the Applicant Prevailed

The Applicant successfully settled all corporate debts after a government dispute was resolved.
She demonstrated a good faith effort to repay overdue creditors and resolve debts.
The financial difficulties were largely due to circumstances beyond her control, such as a business downturn.

Conditions Referenced

Disqualifying

F.1raisedA History of Not Meeting Financial Obligations
F.3raisedInability or Unwillingness to Satisfy Debts

Mitigating

F.1rejectedThe Behavior Was Not Recent
F.2rejectedIt Was an Isolated Incident
F.3appliedThe Conditions That Resulted in the Behavior Were Largely Beyond the Person's Control (e.g., a Business Downturn)
F.6appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts

Key Rule Quoted

“A decision to grant or continue an Applicant's security clearance may be made only upon an affirmative finding that to do so is clearly consistent with the national interest.”

Procedural Posture

SOR issuedJun 4, 2001
Answer filedJul 19, 2001
Hearing heldOct 23, 2001
Decision dateJan 22, 2002

Cite For

Mitigating Conditions Under Guideline F Regarding Financial Considerations
Good Faith Efforts to Resolve Debts
Impact of Business Downturns 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.

Standardized Decision Profile

SEAD-4 Guideline F · descriptive summary of a decided case

Posture: Decision on RecordDecided: granted

The judge found that the applicant had a history of financial difficulties primarily related to her corporation, which led to a Chapter 13 bankruptcy filing. However, the applicant successfully settled her debts and demonstrated a good faith effort to resolve her financial obligations, resulting in a decision to grant her security clearance.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	specific text not stated in this decision	For Applicant	Unspecified Financial	Unknown	—	—	—
1.b	This bill is the personal bill of one of the salesman that worked for her corporation, which the corporation would reimburse the salesman and the salesman would pay the wireless company. She does not know how this bill became a bill of her corporation.	For Applicant	Unspecified Financial	Denied	—	—	—
1.c	The Applicant has testified, pursuant to Section 1001 of Title 10 of the U.S. Code, that she had a one year contract with this wireless phone company. When she completed the contract, she paid her bill in full and then cancelled the contract. Thereafter, she continued to receive bills from that company. She contacted them and the charge was removed from her account. However, the phone company failed to have the alleged charge of $653.00 removed from her credit report. $653	For Applicant	Unspecified Financial	Denied	—	—	—
1.d	This was a corporate bill, for a subcontracting job. A bid of $8,600.00 was given to the Applicant's corporation, and they paid this amount. Thereafter, the subcontractor submitted an other bill in a larger amount. The Applicant had her corporate attorney discuss this bill with the subcontractor's attorney, and as a result, the bill was taken off her account. However, the subcontractor failed to have this additional bill removed from the Applicant's credit report.	For Applicant	Unspecified Financial	Denied	—	—	—
1.e	The Applicant also testified under the terms of perjury that she personally paid this account in cash for a day care center for children on November 17, 1996. The Applicant has contacted the owner of the day care center, however, the Applicant has not received any written record that this account of $95.00 has been paid in full. It is another case where the credit bureau did not take the debt off of the Applicant's credit report. $95	For Applicant	Unspecified Financial	Denied	—	—	—
1.f	The creditor, a home furnishing house, filed suit against the Applicant and obtained a $5,597.00 judgment against her personally. The Applicant was able to settle this matter, and on October 26, 1999, the subject judgment was dismissed, as set forth in Applicant's Exhibit G. $5,597	For Applicant	Judgment Against Applicant	Unknown	—	—	—

Descriptive standardized rendering of a decided public case (Guideline F). The verbatim source decision is shown in full below.

Full decision

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