Out-of-Service Debt
Bankruptcy
Bankruptcy FAQ
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Upon learning that an individual has filed a bankruptcy petition, debt collection is stopped immediately unless it is determined that the automatic stay imposed at the time of filing pursuant to
11 U.S.C. 362
has been lifted or is no longer in effect. In most cases we receive an individual’s bankruptcy information through the respective bankruptcy court; however, on occasion the proper documentation is not received. If your Internal Revenue Service refund, military pay, retired pay, federal salary, or Social Security Administration benefits have been offset, it is imperative that you notify our customer contact center at 1-800-962-0638 if you have filed for Chapter 7 (no asset), Chapter 7 (with assets), or Chapter 13 bankruptcy.
Our customer contact representative will request that you fax a copy of your bankruptcy documentation to 303-676-5607. You may also mail documentation to DFAS-PODC/DE, 6760 E. Irvington Place, Denver CO 80279-7500. Once your bankruptcy documentation is received, we’ll determine if stopping all collection action is appropriate. We will also review the account to determine if any payments were posted to the account after the automatic stay. If a payment has posted, our office will issue a refund. If you filed a Chapter 7 (no asset) bankruptcy, a hardcopy check will be mailed to the address listed on the bankruptcy document or the most current address we have documented in our database. If you filed a Chapter 7 (asset case) or Chapter 13 bankruptcy, a hardcopy check will be mailed to the attorney’s address listed on the bankruptcy document.
If we have withheld funds via administrative offset or salary offset, and you included the debt in the bankruptcy filing, notify us immediately. Our office will contact your current finance office or servicing payroll office to request suspension of collection action and request they refund any funds collected after the automatic stay date.
Our office recognizes the sensitive nature of bankruptcy laws. Each bankruptcy document received is processed in an expeditious manner.
