Pull a copy of your credit report to confirm the federal student loans. (You can obtain a free copy of your credit reports once a year–see annualcreditreport.com in the Resources section). Look at the open trade lines on your report–if any of the student loans is a federal loan, you have federal debt.
What are Federal agency non tax debts?
Federal agency non-tax debts include past due or defaulted student loan payments, payments on HUD loans and any fines, penalties or fees due to any federal department.
What qualifies as federal debt?
Examples of Federal debts are direct loans, HUD-insured loans, student loans, Small Business Administration loans, or judgment liens against property for a debt owed the Federal Government, etc. The applicant’s detailed explanation of how it incurred the delinquent Federal debt.
How much money do I owe to AAFES?
I have finally found out that they are now saying we owe 5,000 dollars (despite paying over $200 a month for 3 or 4 years AND our balance before the income tax debacle was only $1,500. In one year, they have added $3,500 in interest, penalties, and late fees.
What happens when you owe money to a government agency?
If you owe an overdue debt to a government agency, the agency sends information about your debt to our database. When you are going to get a federal payment, we search the database to see if you owe an overdue debt. If your debt is in the database, we hold back money from the payment to pay your debt.
Is the AAFES card a judgment proof debt?
While it sounds like you may be judgment proof, this is not a typical debt since it is owed to the federal government and as you noted, can garnish your wages without taking you to court. But in bankruptcy the AAFES Card is just another unsecured creditor. The income tax issue is another horrible event.
Why did AAFES stop garnishing my wages?
Since AAFES is a government entity, they can use the Treasury department to do their collecting. We never received a notice that our account was going to collections nor that they would start garnishing our wages. So two or so years later, the payments suddenly stopped being garnished. We inquired and we’re informed we had paid the account off.
