ISCR Case 01-21316.h1

Case Headnote

ISCR Case No. 01-21316.h1

grantedJul 24, 2002· Hon. Roger C. Wesley· hearing

Summary

A 30-year-old electronic technician for a defense contractor was granted a security clearance despite concerns under Guideline F (Financial Considerations). The applicant's financial issues stemmed from his first marriage, which ended in 1995, and his reliance on his ex-spouse for financial management. Between 1993 and 1995, he incurred over $4,000 in consumer debts with six creditors.

Further financial problems included a $700 judgment for unpaid rent in 1999, a $4,797 judgment from State A in 1996 for unemployment insurance overage, and a $250 debt to a State A municipality for an outstanding warrant. Two creditors initiated garnishment actions in 1998 for debts totaling $139 and $304.98, which were satisfied through payroll deductions. In 1999, his wages were attached by a State B municipality for child support. Additionally, State C filed tax liens in 1997 for $548.60 (1996-1997 taxes) and $206.15 (1998 personal property taxes).

Despite these issues, the applicant demonstrated significant efforts to resolve his debts through payments and agreements. Many of his remaining debts were deemed legally uncollectible due to State C's five-year statute of limitations. The applicant provided evidence of improved financial responsibility and a commitment to better financial management post-divorce, leading to the decision to grant his security clearance.

Why the Applicant Prevailed

The applicant documented the discharge of several debts through payments and agreements.
He provided evidence of financial responsibility and a commitment to managing his finances better after his divorce.
The applicant's remaining debts were largely time-barred and not enforceable.

Conditions Referenced

Disqualifying

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

Mitigating

MC 3appliedThe Conditions That Resulted in the Behavior Were Largely Beyond the Person's Control (e.g., Loss of Employment, a Business Downturn, Unexpected Medical Emergency, or a Death, Divorce or Separation).
MC 4notedThe Person Has Received or Is Receiving Counseling for the Problem and There Are Clear Indications That the Problem Is Being Resolved or Is Under Control.
MC 6appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts.

Key Rule Quoted

“The ultimate determination of an applicant's eligibility for a security clearance depends, in large part, on the relevance and materiality of that evidence.”

Procedural Posture

SOR issuedOct 24, 2001
Answer filedNov 26, 2001
Hearing heldApr 22, 2002Applicant returned from overseas duty before hearing.
Decision dateJul 24, 2002

Cite For

Demonstrating Financial Responsibility After a History of Debts
Impact of Time-barred Debts on Security Clearance Eligibility
Mitigating Factors Related to Personal Circumstances Affecting Financial Behavior

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 incurred a considerable number of consumer debts during his first marriage, which lasted just two years. Between 1993 and 1995, Applicant incurred consumer debts with some six creditors, which in the aggregate totaled in excess of $4,000.00. $4,000	For Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts	(c) received/receiving counseling; problem being resolved (g) arrangements made with the tax authority; in compliance	—
1.b	Applicant became delinquent in his rent and was sued by his landlord. The landlord obtained a personal judgment against Applicant in July 1999 for $700.00 in unpaid rent. $700	For Applicant	Judgment Against Applicant	Admitted	(a) inability to satisfy debts	(g) arrangements made with the tax authority; in compliance	Documented Debt Paid in Full
1.c	Applicant was subjected to a civil judgment by State A in August 1996 in the amount of $4,797.00 for unemployment insurance overage. $4,797	For Applicant	Judgment Against Applicant	Denied	(a) inability to satisfy debts	—	—
1.d	Applicant became indebted to a State A municipality in the amount of $250.00 on an outstanding warrant for failure to appear on pending charges of engaging in prostitution. $250	For Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts	(g) arrangements made with the tax authority; in compliance	Documented Debt Paid in Full
1.e	Two creditors initiated garnishment actions in 1998 on debts totaling $139.00 and $304.98, respectively. These debts were ultimately satisfied through payroll deductions. $444	For Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts	(g) arrangements made with the tax authority; in compliance	Documented Debt Paid in Full
1.f	Applicant's wages were attached by another creditor: This occurred in 1999 by a State B municipality to satisfy past and current child support obligations.	For Applicant	Child Support Debt	Admitted	(a) inability to satisfy debts	—	—
1.g	A State C municipality filed tax liens against Applicant for unpaid taxes: one in 1997 for tax years 1996 and 1997 in the aggregate amount of $548.60 and another for $206.15 in unpaid personal property taxes for tax year 1998. $754	For Applicant	Tax Unpaid	Admitted	(a) inability to satisfy debts	(g) arrangements made with the tax authority; in compliance	Documented Debt Paid in Full
1.h	Applicant's financial problems continued to plague him long after his divorce in 1995. Applicant made few voluntary efforts to deal with his outstanding creditors before he received the SOR.	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts	—	—
1.i	Applicant offers several explanations for his still unresolved debts: prior unwillingness of his ex-spouse to help pay off their joint debts and the running of pertinent statutes of limitation on several others.	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts	—	—
1.j	Applicant's only other still unpaid debt from his previous marriage would also appear to be time barred.	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts	—	—
1.k	Applicant has for over a year now been exempted from any legally enforceable responsibility for his consumer, veterinary and utility debts.	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts	—	—
1.l	Each of these debts has been rendered legally uncollectible by reason of State C's five-year statute of limitations in effect for claims arising in written contract.	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant incurred a considerable number of consumer debts during his first marriage, which lasted just two years. Between 1993 and 1995, Applicant incurred consumer debts with some six creditors, which in the aggregate totaled in excess of $4,000.00.

$4,000

For Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) received/receiving counseling; problem being resolved

(g) arrangements made with the tax authority; in compliance

—

1.b

Applicant became delinquent in his rent and was sued by his landlord. The landlord obtained a personal judgment against Applicant in July 1999 for $700.00 in unpaid rent.

$700

For Applicant

Judgment Against Applicant

Admitted

(a) inability to satisfy debts

(g) arrangements made with the tax authority; in compliance

Documented

Debt Paid in Full

1.c

Applicant was subjected to a civil judgment by State A in August 1996 in the amount of $4,797.00 for unemployment insurance overage.

$4,797

For Applicant

Judgment Against Applicant

Denied

(a) inability to satisfy debts

—

1.d

Applicant became indebted to a State A municipality in the amount of $250.00 on an outstanding warrant for failure to appear on pending charges of engaging in prostitution.

$250

For Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(g) arrangements made with the tax authority; in compliance

Documented

Debt Paid in Full

1.e

Two creditors initiated garnishment actions in 1998 on debts totaling $139.00 and $304.98, respectively. These debts were ultimately satisfied through payroll deductions.

$444

For Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(g) arrangements made with the tax authority; in compliance

Documented

Debt Paid in Full

1.f

Applicant's wages were attached by another creditor: This occurred in 1999 by a State B municipality to satisfy past and current child support obligations.

For Applicant

Child Support Debt

Admitted

(a) inability to satisfy debts

—

1.g

A State C municipality filed tax liens against Applicant for unpaid taxes: one in 1997 for tax years 1996 and 1997 in the aggregate amount of $548.60 and another for $206.15 in unpaid personal property taxes for tax year 1998.

$754

For Applicant

Tax Unpaid

Admitted

(a) inability to satisfy debts

(g) arrangements made with the tax authority; in compliance

Documented

Debt Paid in Full

1.h

Applicant's financial problems continued to plague him long after his divorce in 1995. Applicant made few voluntary efforts to deal with his outstanding creditors before he received the SOR.

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

—

1.i

Applicant offers several explanations for his still unresolved debts: prior unwillingness of his ex-spouse to help pay off their joint debts and the running of pertinent statutes of limitation on several others.

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

—

1.j

Applicant's only other still unpaid debt from his previous marriage would also appear to be time barred.

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

—

1.k

Applicant has for over a year now been exempted from any legally enforceable responsibility for his consumer, veterinary and utility debts.

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

—

1.l

Each of these debts has been rendered legally uncollectible by reason of State C's five-year statute of limitations in effect for claims arising in written contract.

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy 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

POLICIES

CONCLUSION

FORMAL FINDINGS

DECISION

FOOTNOTES