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HUD Treasury Offset Appeal

If you receive a HUD demand letter you have a limited amount of time to submit a HUD settlement by compromise and attempt to resolve the debt.

The Debt Collection Improvement Act (“DCIA”) requires that federal agencies such as HUD should refer all eligible delinquent debts to the Department of Treasury (“DOT”) by the time a debt is 180 days delinquent. HUD automatically refers eligible debts to the DOT prior to 180 days after the initial HUD demand letter, and HUD’s effort to collect a debt via voluntary payment agreement is normally limited to this time period. After referral, the DOT is responsible for contacting the debtor for payment of the debt and for using the available collection tools to enforce involuntary recovery.

If the debtor does not respond to the demand letter by establishing a repayment arrangement that is approved by HUD, a Notice of Intent to Collect by Treasury Offset.

The HUD Notice of Intent to Collect by Treasury Offset informs the debtor that HUD intends to refer the debt to the DOT for administrative offset of federal payments if the debt is not resolved. This means the DOT will take up to 15% of your federal salary, pension, and benefits such as Social Security. The notice also informs the debtor of the right to an administrative review of the debt (i.e., HUD Treasury Offset Appeal).

A debtor only has a limited amount of time to file a HUD Treasury Offset Appeal.

Generally, the HUD Treasury Offset Appeal  is limited in its review to a determination regarding whether the debt is legally enforceable and past due, and does not consider issues concerning financial hardship or voluntary repayment terms. The appeals office either decides for HUD and directs HUD to continue collection efforts or the matter is dismissed as to the debtor if the debtor is successful.

Protect Law Group has years of experience preparing Treasury Offset Appeals to governmental agencies such as HUD.  Protect Law Group knows the the intricacies of a successful HUD Treasury Offset Appeal and will provide you with aggressive and assertive representation in order to settle your debt.

Contact Protect Law Group today for a FREE consultation and start on the path to settling your HUD debt.

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