The army paid bonus and now its a CHARGE OFF on my credit report...yet collection agentcy harrasses me..DO I..

Question

Do I have to still pay this amount if the army charged it off?

Will the government still deduct my IRS income taxes if the DFAS has charged it off?

They sold it off to ARROW FINANCIAL SERVICES

What are my options..does anyone know?

Its been 5 years ago....since the delinquentcy was first reported with DFAS

Does that mean the Statute of Limitations has already expired for me, and I can tell them to kiss my butt (Arrow Financial)
Or does it mean since it was earlier attached to DFAS, that they will still deduct it from my Income Tax somehow?

Answer 1

God save us from the morality police.

To actually answer your question, once the Government sold your debt they no longer have any control over it. So your tax money is safe.

The statute of limitations is different from State to State so I posted a link so you can look up whatever State you live in.

Derogatory accounts show on your credit for 7-years from the date of first delinquency. Works out to 7-years and 180-days.

If the S.O.L. has not expired, the collection company can sue you and get a judgment, if they do, they can attach bank accounts, garnish wages (if your State allows it) and file liens on any property you may own like cars, boats, land and homes.



http://www.bcsalliance.com/index.html

Answer 2

Well this is a first, I have never heard of the government selling a debt owed to it. I was thinking AFS does have two arms, one is debt collection only arm and the other buys debt and attempts to collect that debt. Makes me wonder if they have simply been retained to collect this debt? But if they have told you they own it, then I guess you can safely assume they were assigned the debt.

The law regarding assignments is pretty well set. Normally the assignee (AFS) stands in the shoes of the assignor (DFAS) and retain all the same rights and privileges. However, I have never seen the government assign a debt (as I stated above). But the general law regarding assignments would indicate that AFS has the same rights and restrictions as DFAS. However, this would not include seizing tax refunds or anything such as that, as DFAS would not have been able to transfer that ability.

I would be interested to hear how this turns out just for future reference. The general law would be that AFS is limited to the same SOL that the government has to collect a debt owed to it......NONE. A debt to the government never goes away. Also, would be interested to know if this debt is dischargeable in bankruptcy, again typically a debt to the state (government) cant be discharged in bankruptcy.

Answer 3

As with student loans there is no statute of limitations when the government is concerned. Yes they can take your tax returns, garnish your wages, lottery winning, inheritance, unemployment, welfare benefits, pretty much any income or benefits. etc. Lets face it you took a bonus and did not live up to the terms of getting that money, not looked upon favorably by the US government, and they do play by different rules then they place on private companies. Would expect a very rough time in the near future.

Answer 4

If it wasn't charged off by bankruptcy then they can still come after you for what you owe, I don't believe there is a statued of limitations on outstanding debt once it's been passed to a collections agency. I believe they can still garnish your income taxes until the debt is paid or unless they offer you a settlement price. I could be wrong but that's how it worked when I worked for a payday loan place and someone in the service went delinquent. Sorry buddy, best of luck to you.

Answer 5

The Government can garnish your wages, freeze your accounts, and take your Tax Refund. However, if Arrow
have they established they PURCHASED or were Assigned
the debt? What does there letter say? Get everything in writing - no phone conversations

read thru creditinfocenter.com
buddhibbs.com

I have a lawsuit against Arrow because they refuse
to validate my debt and have not removed it from
my credit reports.

Answer 6

there is never a time frame that government money owed is washed away. You can't even file bankruptcy against government debts and student loans. they will haunt you forever. You would have been better of, financially and physically by serving your country proudly instead of woosin out.

Answer 7

The 7 year myth, is just a myth.
You borrow money, you have to pay it back.
Simple.

If the army gave you a bonus, and you didn't fullfill the contract, you owe them the money because you took it without fullfilling your duty.

after 7 years your debt automaticly goes into "Charge off" status, that doesn't clean it from your record. Sometimes it does, but it's not the rule.