Category:
Debt Repayment

Subcategory:
DFAS Proposed Payment

Created:
2016-02-27

Modified:
2016-03-12

Can my debt be deducted from my retired pay?

Question

I want my debt to be deducted from my retired pay.  Is this possible?

Answer

Yes, we can transfer your debt to Retired Pay; however they will collect the debt at the maximum amount allowed. Retired Pay is required to collect debts under the guidelines of 37 U.S.C. 1007c. Once an account is referred to Retired Pay for collection, it may be subject to two-thirds of the Retiree's disposable income. Making payment arrangements with our office is the only option a retiree has to establish a "flexible" monthly payment amount. 

Please visit the link below to obtain additional information on how to submit a request for voluntary or reduced payments. http://www.dfas.mil/debtandclaims/paymydebt/hardshipdefermentapplications

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