ISCR Case 05-00847.h2

Case Headnote

ISCR Case No. 05-00847.h2

grantedSep 19, 2006· Hon. Charles D. Ablard· hearing

Summary

A 37-year-old defense contractor employee was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The Statement of Reasons detailed several delinquent debts, including a $6,116 auto dealer debt from 1996, $69,000 in education loans from 1998, and various smaller debts such as a $138 Nebraska Public System bill, $3,700 in State of Nebraska child support, and State of Nebraska tax debts of $766 and $862. A $206 public utility bill was disputed, and a $1,460 dental bill from around the time of his bankruptcy was also noted, which had led to a garnishment in 2002.

The applicant successfully demonstrated that many of the delinquent debts were attributable to family members sharing identical names, leading to confusion. He also showed a good faith effort to resolve his financial obligations. The $6,116 auto dealer debt and the $138 Nebraska Public System debt were likely discharged in his 2000 bankruptcy. The $69,000 education loans, initially delinquent due to a misunderstanding about bankruptcy coverage, were made current with $150 per pay period installments. The $3,700 child support and $862 tax debts were paid in full.

At the time of his final submission, only two debts remained on his credit report: the $766 State of Nebraska tax debt and the $1,460 dental bill. Both of these were subsequently paid, with the dental bill garnishment terminated. The decision to grant the clearance was based on the applicant's clarification regarding the shared names, his proactive efforts to resolve the debts, and the ultimate payment of all outstanding obligations.

Why the Applicant Prevailed

Applicant established that most delinquent debts were attributable to family members with identical names.
He demonstrated a good faith effort to resolve the debts, with only two remaining on his credit report, both of which were paid post-hearing.
The applicant's financial issues were largely due to confusion over shared names and addresses within his family.

Conditions Referenced

Disqualifying

E2.A6.1.1raisedFinancial Considerations
E2.A6.1.2.1raisedHistory of Not Meeting Financial Obligations
E2.A6.1.2.3raisedInability or Unwillingness to Satisfy Debts

Mitigating

E2.A6.1.3.6appliedGood Faith Effort to Repay Overdue Creditors

Key Rule Quoted

“An applicant is not required to prove that all delinquent debts are resolved to be granted a security clearance, but only that efforts are being made to resolve the debts and to show that the matters are being diligently pursued with an ability to resolve them.”

Procedural Posture

SOR issuedSep 14, 2005
Answer filedOct 7, 2005
Hearing heldMay 4, 2006
Decision dateSep 19, 2006

Cite For

Mitigation of Financial Concerns Under Guideline F
Impact of Family Name Confusion on Financial Responsibility
Good Faith Efforts in Resolving 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	specific text not stated in this decision	For Applicant	Unspecified Financial	Unknown	—	—	—
1.b	$6,116.00 Auto dealer debt from 1996. Applicant believes this was discharged in the 2000 bankruptcy proceeding which seems likely since it preceded the bankruptcy by four years. It is not on the current financial report. $6,116	For Applicant	Auto Loan Debt	Unknown	—	—	—
1.c	$69,000.00 Education loans from 1998. This debt is being paid in installments of $150.00 per pay period. There was a period of delinquency at the time of his bankruptcy when Applicant erroneously thought this debt could be covered in bankruptcy. It is now current. $69,000	For Applicant	Student Loan Debt	Unknown	—	—	—
1.d	$138.00 Nebraska Public System 1999. Covered in the bankruptcy. $138	For Applicant	Unspecified Financial	Unknown	—	—	—
1.e–1.o	11 sub-charges — specific text not stated in this decision (for the applicant).	For Applicant			—	—	—
1.p	$3,700.00 State of Nebraska child support. Paid in full. No longer on credit report. $3,700	For Applicant	Child Support Debt	Unknown	—	—	—
1.q–1.s	3 sub-charges — specific text not stated in this decision (for the applicant).	For Applicant			—	—	—
1.t	$206.00 A public utility. He is disputing it as he believes it has been paid but, if it has not, he will pay it. $206	For Applicant	Utility or Phone Debt	Unknown	—	—	—
1.u	$766.00 State of Nebraska tax. This is one of the two debts still listed on his most current credit report. It is reported as terminated and satisfied in Item 2 in Applicant's final submission. $766	For Applicant	Tax Unpaid	Unknown	—	—	—
1.v	$862.00 State of Nebraska tax. Paid and no longer on credit report. $862	For Applicant	Tax Unpaid	Unknown	—	—	—
1.w	$1,460.00 Dental bill. Second of two debts still listed on his most recent credit report. Applicant was paying on the bill incurred around the time of his bankruptcy. In 2002, the creditor, dissatisfied with the amount being paid, obtained a garnishment. Applicant has now paid the bill in full and the garnishment is terminated as shown by Item 3 in his September 5 submission. $1,460	For Applicant	Medical Debt	Unknown	—	—	—
1.x–1.z	3 sub-charges — specific text not stated in this decision (for the applicant).	For Applicant			—	—	—

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

$6,116.00 Auto dealer debt from 1996. Applicant believes this was discharged in the 2000 bankruptcy proceeding which seems likely since it preceded the bankruptcy by four years. It is not on the current financial report.

$6,116

For Applicant

Auto Loan Debt

Unknown

—

1.c

$69,000.00 Education loans from 1998. This debt is being paid in installments of $150.00 per pay period. There was a period of delinquency at the time of his bankruptcy when Applicant erroneously thought this debt could be covered in bankruptcy. It is now current.

$69,000

For Applicant

Student Loan Debt

Unknown

—

1.d

$138.00 Nebraska Public System 1999. Covered in the bankruptcy.

$138

For Applicant

Unspecified Financial

Unknown

—

1.e–1.o

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

For Applicant

—

1.p

$3,700.00 State of Nebraska child support. Paid in full. No longer on credit report.

$3,700

For Applicant

Child Support Debt

Unknown

—

1.q–1.s

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

For Applicant

—

1.t

$206.00 A public utility. He is disputing it as he believes it has been paid but, if it has not, he will pay it.

$206

For Applicant

Utility or Phone Debt

Unknown

—

1.u

$766.00 State of Nebraska tax. This is one of the two debts still listed on his most current credit report. It is reported as terminated and satisfied in Item 2 in Applicant's final submission.

$766

For Applicant

Tax Unpaid

Unknown

—

1.v

$862.00 State of Nebraska tax. Paid and no longer on credit report.

$862

For Applicant

Tax Unpaid

Unknown

—

1.w

$1,460.00 Dental bill. Second of two debts still listed on his most recent credit report. Applicant was paying on the bill incurred around the time of his bankruptcy. In 2002, the creditor, dissatisfied with the amount being paid, obtained a garnishment. Applicant has now paid the bill in full and the garnishment is terminated as shown by Item 3 in his September 5 submission.

$1,460

For Applicant

Medical Debt

Unknown

—

1.x–1.z

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

For Applicant

—

Loading case…

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

FINDINGS OF FACT

POLICIES

CONCLUSION

FORMAL FINDINGS

DECISION

FOOTNOTES