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ISCR 97-0512.h1: Guideline F security clearance hearing, denied (1997) · CASE

ISCR Case 97-0512.h1denied

Case headnote

ISCR Case No. 97-0512.h1

deniedDec 11, 1997· Hon. Joseph Testan· hearing

Summary

The applicant, representing themselves, was denied a security clearance under Guideline F (Financial Considerations) due to significant financial indebtedness. The Statement of Reasons detailed a history of financial issues, including a wage garnishment in 1995 for a $523.81 debt.

Since at least October 1996, the applicant has been indebted for at least $32,000 to over twenty creditors. Most of these debts were listed in a Chapter 13 bankruptcy petition, which was ultimately dismissed because the applicant failed to make required payments. The bankruptcy trustee noted a delinquency of at least $2,968.92, which continued to accrue.

The denial was based on the applicant's consistent history of not meeting financial obligations and a demonstrated inability or unwillingness to satisfy these debts. No credible evidence was presented to show a capacity or intent to resolve the outstanding financial commitments.

Why the applicant was denied

The applicant has a history of not meeting financial obligations.
The applicant demonstrated an inability or unwillingness to satisfy debts.

Conditions referenced

Disqualifying

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

Key rule quoted

“Without such evidence, it not clearly consistent with the national interest to grant her access to classified information.”

Procedural posture

SOR issuedJul 30, 1997
Answer filedAug 18, 1997Applicant elected to have the case determined on a written record.
Hearing held—No hearing; case determined on written record.
Decision dateDec 11, 1997

Cite for

Financial Obligations Under Guideline F
Impact of Bankruptcy Dismissal on Security Clearance
Lack of Mitigating Factors in Financial Cases

Editorial summary generated for research. Not legal advice; not a prediction. Verify against the full decision before relying on any quoted language.

From the decision

Facts this decision states, each with the exact sentence it comes from. Descriptive of the record, not an assessment.

Delinquent debt cited: $32,000 (on a payment plan; bankruptcy filed, not discharged): “Applicant has been indebted in the total amount of at least $32,000.00 to at least twenty-three creditors since at least October 1996.”

Standardized Decision Profile

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

Posture: Decision on RecordDecided: denied

The judge found against the applicant on financial considerations due to a significant history of unpaid debts totaling at least $32,000. The applicant failed to provide credible evidence of her ability or willingness to satisfy these debts, leading to the denial of her security clearance.

The sub-allegation breakdown is part of the Professional plan. See what it includes.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation

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

Full decision

The complete, official text, footnotes and signatures included, is in the original PDF.

Decision text, by section

DEFENSE OFFICE OF HEARINGS AND APPEALS

HEARING

APPEARANCES

DATE: December 11, 1997 In Re: Applicant for Security Clearance ISCR Case No. 97-0512 DECISION OF ADMINISTRATIVE JUDGE JOSEPH TESTAN

FOR GOVERNMENT Melvin A. Howry, Department Counsel FOR APPLICANT Pro Se

STATEMENT OF CASE

On July 30, 1997, the Defense Office Of Hearings and Appeals (DOHA), pursuant to Executive Order 10865 and Department of Defense Directive 5220.6 (Directive), dated January 2, 1992, issued a Statement of Reasons (SOR) (copy appended) to (Applicant), which detailed reasons why DOHA could not make the preliminary affirmative finding under the Directive that it is clearly consistent with the national interest to grant or continue a security clearance for applicant and recommended referral to an Administrative Judge to determine whether clearance should be denied or revoked. The applicant responded to the SOR in writing on or about August 18 1997, and elected to have her case determined on a written record in lieu of a hearing. Department Counsel submitted the Government's written case on or about October 11, 1997. The applicant filed a response to the Government's written case on October 28, 1997. The case was received by the undersigned Administrative Judge on November 24, 1997.

FINDINGS OF FACT

Applicant has been indebted in the total amount of at least $32,000.00 to at least twenty-three creditors since at least October 1996.(1) There is no credible evidence that she has made any recent payments to any of these creditors, or that she is likely to make any payments to any of these creditors anytime soon. In October 1996, applicant and her husband filed a Bankruptcy Petition under Chapter 13 of the Bankruptcy Code.(2) As a result of this filing, applicant's creditors were legally barred from trying to collect the debts directly from her. However, a payment plan was established requiring applicant to make regular payments to the Bankruptcy Trustee who, upon receipt, would make payments to the various creditors. In May 1997, the Bankruptcy Trustee filed a Motion for an Order dismissing the Chapter 13 proceeding due to applicant's failure to make the required plan payments.(3) On June 11, 1997, the Bankruptcy Judge dismissed the Chapter 13 proceedings and dissolved all of the stays that were in effect. Once the stays were dissolved, applicant's creditors could resume collection action directly against her. Applicant admits that her wages were garnished by her employer in 1995 to satisfy a $523.81 debt (SOR paragraph 1o).

POLICIES

Enclosure 2 of the Directive sets forth the Adjudication Policy (divided into Disqualifying Factors and Mitigating Factors) which must be followed by the Administrative Judge. Based on the foregoing Findings of Fact, the following Disqualifying Factors and Mitigating Factors are applicable: FINANCIAL CONSIDERATIONS Disqualifying Factors: 1. A history of not meeting financial obligations. 3. Inability or unwillingness to satisfy debts. Mitigating Factors: None.

CONCLUSION

The evidence establishes that applicant has been indebted to at least twenty-three creditors in a total amount of at least $32,000.00 since at least October 1996. She offered no credible evidence indicating that she is willing and able to satisfy these past-due debts. Without such evidence, it not clearly consistent with the national interest to grant her access to classified information. For this reason, Criterion F is found against applicant.

FORMAL FINDINGS

PARAGRAPH 1: AGAINST THE APPLICANT

DECISION

In light of all the circumstances presented by the record in this case, it is not clearly consistent with the national interest to grant or continue a security clearance for applicant. ____________________________ Joseph Testan Administrative Judge 1. Department Counsel offered prima facie evidence of all the debts alleged in the SOR except the debts alleged in SOR Paragraphs 1e, 1r, and 1w. 2. Most of the debts alleged in the SOR were listed on the Bankruptcy Petition. 3. The Trustee stated in the Motion that the debtors were "delinquent at least $2,968.92, and the delinquency continues to accrue."

FOOTNOTES

97-0512.h1 file:///usr.osd.mil/...yComputer/Desktop/DOHA%20transfer/DOHA-Kane/dodogc/doha/industrial/Archived%20-%20HTML/97-0512.h1.html[7/2/2021 4:03:03 PM] 97-0512.h1 file:///usr.osd.mil/...yComputer/Desktop/DOHA%20transfer/DOHA-Kane/dodogc/doha/industrial/Archived%20-%20HTML/97-0512.h1.html[7/2/2021 4:03:03 PM]