ISCR Case 06-13599.h1

Case Headnote

ISCR Case No. 06-13599.h1

grantedDec 29, 2006· Hon. Carol G. Ricciardello· hearing

Summary

A 41-year-old chief chef for a maritime ship was granted a security clearance despite concerns under Guideline F (Financial Considerations). His financial difficulties stemmed from a breakup and underemployment, leading to several delinquent debts. The Statement of Reasons detailed various outstanding obligations, including credit card debts, joint debts with a former roommate for a judgment and cable television, and student loans.

The applicant had already established repayment plans for some debts, including a credit card that was fully paid and another with consistent automatic monthly payments. He resumed payments on a student loan, which he had defaulted on in 2000, and was advised that consistent payments for a year would remove its delinquency status. While some joint debts remained unresolved with a former roommate, and other admitted debts had not yet been paid, the applicant expressed a clear intent to resolve all outstanding obligations.

The judge found that the applicant successfully mitigated the security concerns. This was based on his demonstrated good-faith effort to repay creditors, his initiation of repayment plans prior to the security clearance issue, and his consistent payments despite reduced income due to a medical issue. His credible intention to resolve all remaining debts and an improved employment situation further supported the decision to grant the security clearance.

Why the Applicant Prevailed

The applicant demonstrated a good-faith effort to repay overdue creditors and resolve debts.
He initiated repayment plans prior to the security clearance issue and maintained consistent payments despite financial hardships.
The applicant's credible intention to resolve all debts and his improved employment situation supported the decision.

Conditions Referenced

Disqualifying

E2.A6.1.2.1raisedA History of Not Meeting Financial Obligations
E2.A6.1.2.3raisedInability or Unwillingness to Satisfy Debts

Mitigating

E2.A6.1.3.1rejectedThe Behavior Was Not RecentThe applicant had recent debts that were still owed.
E2.A6.1.3.2rejectedIt Was an Isolated IncidentThe number of debts negated the application of this condition.
E2.A6.1.3.3rejectedThe Conditions That Resulted in the Behavior Were Largely Beyond the Person's ControlWhile some conditions contributed to the financial issues, they were not the main cause.
E2.A6.1.3.6appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts

Key Rule Quoted

“The sole purpose of a security clearance determination is to decide if it is clearly consistent with the national interest to grant or continue a security clearance for an applicant.”

Procedural Posture

SOR issuedJul 18, 2006
Answer filedSep 14, 2006
Hearing heldDec 6, 2006
Decision dateDec 29, 2006

Cite For

Good-faith Efforts to Repay Debts Under Guideline F
Impact of Medical Issues on Financial Obligations
Consideration of the Whole Person 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	Applicant set up a payment plan and has been making consistent monthly payments on the debt listed in SOR ¶ 1.a. It is a credit card debt that is now completely paid.	For Applicant	Credit Card Debt	Admitted	—	(g) arrangements made with the tax authority; in compliance	Credited Debt Paid in Full
1.b	The judgment listed in SOR ¶ 1.b is a joint debt that is owed by a former roommate and Applicant. Applicant admits the judgment is owed and he intends to seek out the roommate to pay his share of the debt, but has not done so yet.	For Applicant	Judgment Against Applicant	Admitted	—	—	Claimed Other
1.c	The debt in SOR ¶ 1.c is also a joint debt for cable television owed by Applicant and his former roommate. Applicant intends to pay this debt.	For Applicant	Unspecified Financial	Admitted	—	—	Claimed Other
1.d	Applicant disputes the debt in SOR ¶ 1.d as being a duplicate debt with ¶ 1.c, or not his debt at all because of the location where the debt originated. He has not followed up on this debt, but intends to pay it if he cannot resolve it.	For Applicant	Unspecified Financial	Denied	—	—	Claimed Other
1.e	The debt in SOR ¶ 1.e is a credit card debt that Applicant set up a repayment plan approximately a year ago and has been consistently making monthly payments of $50 through an automatic deduction.	For Applicant	Credit Card Debt	Admitted	—	(g) arrangements made with the tax authority; in compliance	Credited Payment Plan with Creditor
1.f	Applicant admits he owes the debts listed in SOR ¶ 1.f, but has not paid yet.	For Applicant	Unspecified Financial	Admitted	—	—	Claimed Other
1.g	Applicant admits he owes the debts listed in SOR ¶ 1.g, but has not paid yet.	For Applicant	Unspecified Financial	Admitted	—	—	Claimed Other
1.h	Applicant admits he owes the debts listed in SOR ¶ 1.h, but has not paid yet.	For Applicant	Unspecified Financial	Admitted	—	—	Claimed Other
1.i	Applicant took out a student loan in 1996, listed in SOR ¶¶ 1.i, 1.j, 1.k and 1.l, and paid on it for four years until he defaulted on it in 2000. In June 2006, he resumed making payments on the loan and was advised by the loan company that if he continued to make consistent monthly payments for a year they would remove the account from delinquency status.	For Applicant	Student Loan Debt	Admitted	—	(g) arrangements made with the tax authority; in compliance	Credited Payment Plan with Creditor
1.j–1.l	3 sub-charges — specific text not stated in this decision (for the applicant). (low confidence)	For Applicant			—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant set up a payment plan and has been making consistent monthly payments on the debt listed in SOR ¶ 1.a. It is a credit card debt that is now completely paid.

For Applicant

Credit Card Debt

Admitted

—

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

Credited

Debt Paid in Full

1.b

The judgment listed in SOR ¶ 1.b is a joint debt that is owed by a former roommate and Applicant. Applicant admits the judgment is owed and he intends to seek out the roommate to pay his share of the debt, but has not done so yet.

For Applicant

Judgment Against Applicant

Admitted

—

Claimed

Other

1.c

The debt in SOR ¶ 1.c is also a joint debt for cable television owed by Applicant and his former roommate. Applicant intends to pay this debt.

For Applicant

Unspecified Financial

Admitted

—

Claimed

Other

1.d

Applicant disputes the debt in SOR ¶ 1.d as being a duplicate debt with ¶ 1.c, or not his debt at all because of the location where the debt originated. He has not followed up on this debt, but intends to pay it if he cannot resolve it.

For Applicant

Unspecified Financial

Denied

—

Claimed

Other

1.e

The debt in SOR ¶ 1.e is a credit card debt that Applicant set up a repayment plan approximately a year ago and has been consistently making monthly payments of $50 through an automatic deduction.

For Applicant

Credit Card Debt

Admitted

—

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

Credited

Payment Plan with Creditor

1.f

Applicant admits he owes the debts listed in SOR ¶ 1.f, but has not paid yet.

For Applicant

Unspecified Financial

Admitted

—

Claimed

Other

1.g

Applicant admits he owes the debts listed in SOR ¶ 1.g, but has not paid yet.

For Applicant

Unspecified Financial

Admitted

—

Claimed

Other

1.h

Applicant admits he owes the debts listed in SOR ¶ 1.h, but has not paid yet.

For Applicant

Unspecified Financial

Admitted

—

Claimed

Other

1.i

Applicant took out a student loan in 1996, listed in SOR ¶¶ 1.i, 1.j, 1.k and 1.l, and paid on it for four years until he defaulted on it in 2000. In June 2006, he resumed making payments on the loan and was advised by the loan company that if he continued to make consistent monthly payments for a year they would remove the account from delinquency status.

For Applicant

Student Loan Debt

Admitted

—

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

Credited

Payment Plan with Creditor

1.j–1.l

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

For Applicant

—

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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

CONCLUSION

FORMAL FINDINGS

DECISION

FOOTNOTES

APPEARANCES