Credit Issues of my own doing


A “fly by night credit repair company” . . . Well, I can see that as being a problem.

I expect that the issue with many of the denials is a failure to present the situation properly when given the chance. In most cases, I think that adjudicators are afraid to make a decision, issue a denial and push the decision off to an ALJ on appeal. Properly preparing the for the hearing is difficult but needs to be done well.

But, it CAN be done . . .



I would not completely rule it out, but definitely be prepared. You will be meeting with an investigator, and you should have any documentation showing accounts are paid. Also on a side note, it is very possible that any debt that is settled for less than you owe may require income taxes to be paid on the unpaid debt. For example, if you had 70000 in credit card debt and you only had to pay 50000, you very well could get I believe a 1099-C for the 20000 canceled debt. (I may be wrong on the form). Back to the investigation, meet with the investigator, explain your situation, show that you have grown, present the documentation and take it from there. Good Luck!



I agree with all these recommendations.

Want a quick and almost painless Subject interview? Prepare yourself, review all of your credit reports, have the information required to be reported on the SCA (unless you already have reported this information on the SCA), bring documentation that you are currently paying/paid off on your debts, and don’t hemhaw or play word games during your interview. Answer the questions. Understand the interview is your opportunity to provide information to the adjudicator…

Own up to the issue, stick to just the facts, provide any proof of payment/payment plan and you are ahead of almost everybody else.



No I have been given 1099-C for the pass two years for accounts that were settled for 70% or less of what I owed. But I have filed them accordingly. I also showed the investigator all the apparent information and documentation (even though the investigator did not think the information with him). I also brought up the website (on my phone) to show the payments mad to debt relief program as well the money at the time that was setting there in the account to help pay for funds. But I gave the investigator all the information needed (i think) so the adjudicator can make a decision. My thing is all of this is also in my SF-86 form. So I thought by telling them before hand would make it easier to give me my interim. But I guess not now I am worried about the final clearance. I currently not in the situation to pay off all the debt but I could give the program about %15000 to $18000 depending to help them settle things faster. This means I would be taking money from my sons college fund and my personal savings. The last resort I could take up all the money from my 401K and pay the penalty on it and then I would have the money to pay the debt relief program the money to possible settle the accounts within the next month or two. I just do not want to do that as it would be a great set back but I also want this job. Decisions, Decisions, Decisions. I now just using this platform to think about how I can get my final clearance now. More than worrying about if I would or not get it. I want to force the hand to show that I am clearable and fit for a clearance.



So I do not need to worry about paying them off right this instance meaning finding the funds to the debt relief so they can settle all of them right now rather than waiting until 2021 or when my house is sold (which my house will sold after I get this job pending clearance eligibility)



Correct me if I am mistaken, you have saved approximately $15K and you have net monthly disposable income of approx. $780. I would imagine an adjudicator would want to know why you were unable to address the 4 unaddressed debts given the saving and monthly disposable income. I don’t believe that it is enough to say something to the effect of “I am in a program and it will be settled on X date in the future” or “I plan to pay it off after securing this job by selling the house.”

If there’s anything I’ve learned from reading about security clearance process, it is that actions speak louder than words. This is why I have a feeling that you have a better chance with a judge.

If I were you and the job is a dream job, I would make the sacrifice and start paying/settling the 4 unaddressed debts. If I need use the money that I saved, so be it. Regardless, it is your decision and I wish you luck.

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Unfortunately, the judge or adjudicator does not care about your son’s college or savings, they want these debts resolved. I had a case where a applicant paid his daughters college tuition instead of paying delinquent debt first. He lost his clearance. My advice to you is to show that you are in a program and if you have ANY extra, disposable income, pay off the debts. I know this is not what you want to hear, but its the cold hard facts man. I would also consider your belief that this job is really worth all this sacrifice, jobs change, people change. Best wishes with whatever decision you make.


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Since I am the program I am still at the mercy not them settling the debt. Which does not mean if I give them the money right now that it would settled tomorrow or even next month. If I bypass the program and call the creditors now I would be paying more even if I was not in the program at all at this point. The reason I am able to save and put my family in a good situation is that I am in this program. But I guess I need to wait and see.



You have a plan in place, you appear to be living within your means now, and the event that caused the debt seems to have passed.

This is normally what you need to show/prove to demonstrate you have mitigated the financial issue. You don’t need to empty your savings but you will need to remain current on the payment plan.

As always, I am only responding to the information you have provided in this forum. Good luck on your case.



Thanks you for all of your responses over the last 5 month or so. I am just going to sit back and stop bothering you all and pray that I have a favorable adjuncation in 2 or 10 months from now (sooner the bother)



I would point out that the imputed income from a 1099-C can be mitigated for tax purposes in some situations. It’s not widely known even among paid tax preparers, that there is an insolvency worksheet. If at the time the debt was forgiven, your liabilities outweigh your assets, the 1099-C is not taxable. This can save you thousands. Be sure that you work with a fully qualified preparer or do a lot of research on your own.

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Thank you EdFarmerIII for the information.

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So I found out last week after calling OPM that on Feb 8, 2019 my package has bee sent for adjudication. So now it is in the adjudicator’s hands and all I can do is pray. Thank you all for your informative comments and your thoughts. I hope to let you all know that I had a favorable adjudication. But until then thanks again. More to come soon (I hope).

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Keep us posted! It always help to build our knowledge based on actual inputs and experiences

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More information is that DoD is adjudicator in my case. Which I heard they can take anywhere from 60 days to 90 days. Anyone know if that is accurate or not?



So yesterday, after having to give more written details of my situation and how I am trying to fix these issues using National Debt Relief program, I have been awarded a TS clearance. I am excited. Thank you all for answering my questions and dealing with my weird story throughout the last 8 months. I am really excited to start my new job.



@dude01…congratulations and thanks for the update!



This is fantastic news! Congrats! So the debt relief program I think mitigated the financial issues. How much unsettled debt did you have, this is good information to have for a barometer of the adjudicative scale. Merlin :slight_smile:



I had roughly $78K of which since I was in the program about a year and half prior to me accepting a job that I needed a clearance half of it was handled already by the program. The other half was in the program either being paid or not yet settled. The taxes are hurting since all of the creditors been giving me a 1099R. But that is understandable.



The taxes are hurting, what do you mean by this? Do you still have unresolved tax debt as well? Thanks for sharing, I think what also worked on your case was your honesty, this counts for a lot in these investigations.