ISCR Case 97-0232.h1

Case Headnote

ISCR Case No. 97-0232.h1

grantedAug 11, 1997· Hon. Elizabeth M. Matchinski· hearing

Summary

A 45-year-old painter, employed by a defense contractor since 1980, sought to retain her Secret security clearance despite a history of financial difficulties. The Statement of Reasons (SOR) detailed multiple outstanding debts under Guideline F (Financial Considerations), including judgments for $860.93, $4,979.66, $224.64, $2,567.91, $302.90, $1,435.60, and $235.58. Other debts included a charged-off credit card balance of $442.00, a delinquent retailer debt of $190.00, $2,203.30 in back rent and cleaning fees, and an additional $272.90 for a second emergency room visit. A withholding order for $18,325.59 was issued in March 1996, with a balance of $16,467.00 owed as of January 1997.

The applicant demonstrated a recent good-faith effort to address these financial obligations. She made payments towards the $860.93 judgment, reducing it to $235.27, and the $442.00 credit card debt, reducing it to $249.00. A $50.00 payment was made on the $190.00 retailer debt, and the back rent was reduced to $2,003.30. Wage executions were pending for several judgments, and the applicant continued to make monthly payments on the $4,979.66 judgment.

The decision to grant the security clearance was based on the applicant's recent good-faith efforts to repay her creditors and resolve her debts. Her financial difficulties were largely attributed to circumstances beyond her control, such as a loss of overtime work, and her commitment to financial responsibility was evidenced by recent payments made towards multiple obligations.

Why the Applicant Prevailed

The applicant initiated a good-faith effort to repay overdue creditors and resolve debts.
Recent payments were made towards multiple debts, indicating a commitment to financial responsibility.
The applicant's financial difficulties were largely due to circumstances beyond her control, such as loss of overtime work.

Conditions Referenced

Disqualifying

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

Mitigating

F.6appliedGood-faith Effort to Repay Overdue Creditors or Resolve Debts

Key Rule Quoted

“A person who seeks access to classified information enters into a fiduciary relationship with the Government predicated upon trust and confidence.”
— Department of Navy v. Egan, 484 U.S. 518, 531 (1988)

Procedural Posture

SOR issuedMar 31, 1997
Answer filedApr 21, 1997
Hearing heldJun 27, 1997
Decision dateAug 11, 1997

Cite For

Good-faith Efforts to Resolve Financial Issues Under Guideline F
Mitigation of Financial Concerns Due to Circumstances Beyond Control
Consideration of Recent Actions Taken to Address Long-standing Debts

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	On December 31, 1991, the creditor was awarded a judgment against Applicant in the amount of $860.93. on which Applicant paid $350.00. As of June 19, 1997, she had reduced the balance owed to $235.27. $235	For Applicant	Judgment Against Applicant	Unknown	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—
1.b	Applicant's credit card account with a clothing store became delinquent in the amount of $442.00 and was charged off in December 1992. As of June 6, 1997, she had reduced the amount of the obligation to $249.00. $249	For Applicant	Credit Card Debt	Unknown	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—
1.c	A delinquent debt with another retailer was charged off to profit and loss in about January 1993 with $190.00 owed. Applicant made no effort to satisfy the debt until June 1997 when she made a $50.00 payment. $190	For Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—
1.d	On March 22, 1993, the insurer for the victim obtained a judgment against Applicant in the amount of $4,979.66. As of February 1997, the wage execution was still pending. With the May 1997 monthly payment, the amount owed creditor #1 was approximately $4,915.00. $4,915	For Applicant	Judgment Against Applicant	Unknown	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—
1.e	When she vacated the premises on or about August 13, 1993, Applicant owed back rent and cleaning fees in the amount of $2,203.30. As of June 19, 1997, she had reduced the amount owed to $2,003.30. $2,003	For Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—
1.f	An outstanding balance of $194.64 for the first visit was delinquent as of January 17, 1994. On May 2, 1994, the creditor was awarded a judgment against Applicant in the amount of $224.64. As of July 18, 1994, Applicant owed creditor #7 an additional $272.90 for a second emergency room visit. $194	For Applicant	Medical Debt	Unknown	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—
1.g	In April 1994, Applicant financed through creditor #8 the purchase of a used Pontiac Le Mans automobile with payment terms of $205.00 per month for twenty-four months. On December 18, 1995, creditor #8 was awarded a judgment against Applicant in the amount of $2,567.91. $2,567	For Applicant	Auto Loan Debt	Unknown	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—
1.h	On July 18, 1994, Applicant owed creditor #7 an additional $272.90 for a second emergency room visit. On November 14, 1994, the creditor was awarded a judgment against Applicant in the amount of $302.90. $302	For Applicant	Medical Debt	Unknown	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—
1.i	In March 1995, a judgment was entered against her in the amount of $1,435.60 in favor of creditor #9, an insurance company. On June 28, 1995, the creditor filed for wage execution to recover the unpaid judgment plus $10.00 costs. $1,435	For Applicant	Judgment Against Applicant	Unknown	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—
1.j	Creditor #7 was awarded a third judgment for unpaid fees associated with an emergency room visit in 1995. With sheriff fees, the amount sought to be recovered through garnishment was $235.58. $235	For Applicant	Judgment Against Applicant	Unknown	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—
1.k	On March 21, 1996, the court issued a withholding order directing company A to garnish Applicant's wages until the collective amount due, $18,325.59, was repaid. As of January 20, 1997, the balance owed was $16,467.00. $16,467	For Applicant	Student Loan Debt	Unknown	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

On December 31, 1991, the creditor was awarded a judgment against Applicant in the amount of $860.93. on which Applicant paid $350.00. As of June 19, 1997, she had reduced the balance owed to $235.27.

$235

For Applicant

Judgment Against Applicant

Unknown

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

—

1.b

Applicant's credit card account with a clothing store became delinquent in the amount of $442.00 and was charged off in December 1992. As of June 6, 1997, she had reduced the amount of the obligation to $249.00.

$249

For Applicant

Credit Card Debt

Unknown

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

—

1.c

A delinquent debt with another retailer was charged off to profit and loss in about January 1993 with $190.00 owed. Applicant made no effort to satisfy the debt until June 1997 when she made a $50.00 payment.

$190

For Applicant

Unspecified Financial

Unknown

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

—

1.d

On March 22, 1993, the insurer for the victim obtained a judgment against Applicant in the amount of $4,979.66. As of February 1997, the wage execution was still pending. With the May 1997 monthly payment, the amount owed creditor #1 was approximately $4,915.00.

$4,915

For Applicant

Judgment Against Applicant

Unknown

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

—

1.e

When she vacated the premises on or about August 13, 1993, Applicant owed back rent and cleaning fees in the amount of $2,203.30. As of June 19, 1997, she had reduced the amount owed to $2,003.30.

$2,003

For Applicant

Unspecified Financial

Unknown

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

—

1.f

An outstanding balance of $194.64 for the first visit was delinquent as of January 17, 1994. On May 2, 1994, the creditor was awarded a judgment against Applicant in the amount of $224.64. As of July 18, 1994, Applicant owed creditor #7 an additional $272.90 for a second emergency room visit.

$194

For Applicant

Medical Debt

Unknown

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

—

1.g

In April 1994, Applicant financed through creditor #8 the purchase of a used Pontiac Le Mans automobile with payment terms of $205.00 per month for twenty-four months. On December 18, 1995, creditor #8 was awarded a judgment against Applicant in the amount of $2,567.91.

$2,567

For Applicant

Auto Loan Debt

Unknown

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

—

1.h

On July 18, 1994, Applicant owed creditor #7 an additional $272.90 for a second emergency room visit. On November 14, 1994, the creditor was awarded a judgment against Applicant in the amount of $302.90.

$302

For Applicant

Medical Debt

Unknown

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

—

1.i

In March 1995, a judgment was entered against her in the amount of $1,435.60 in favor of creditor #9, an insurance company. On June 28, 1995, the creditor filed for wage execution to recover the unpaid judgment plus $10.00 costs.

$1,435

For Applicant

Judgment Against Applicant

Unknown

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

—

1.j

Creditor #7 was awarded a third judgment for unpaid fees associated with an emergency room visit in 1995. With sheriff fees, the amount sought to be recovered through garnishment was $235.58.

$235

For Applicant

Judgment Against Applicant

Unknown

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

—

1.k

On March 21, 1996, the court issued a withholding order directing company A to garnish Applicant's wages until the collective amount due, $18,325.59, was repaid. As of January 20, 1997, the balance owed was $16,467.00.

$16,467

For Applicant

Student Loan Debt

Unknown

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

—

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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