Hi all,
I had an original debt of $24,000 to DFAS for some Army gear and government overpayment. Unfortunately, I ignored this debt for too long; it was referred to a collection agency and my tax refund was garnished annually. Fast forward to March of this year, I decided to file for Chap. 7 bankruptcy. My attorney told me only a partial amount is dischargeable, which was about $10,000 (gear). $14,000 of government overpayment was not dischargeable. My Chap. 7 was discharged in early June.
In late April (before discharge), I received a statement/bill from DFAS with the outstanding $14K balance due in 30 days. My lawyer confirmed this was for the non-dischargeable government overpayment and said he would contact DFAS to try to stop all collections until my discharge date. I then immediately submitted Reduced Installment Payment Request based on his advice.
I received another bill/statement in late May with the outstanding $14K balance due in 30 days from the date of the statement. Unfortunately, my attorney was out from when I received the bill up until and throughout my discharge date so I called DFAS myself. They said I am not eligible for any repayment options since all collection resources have been exhausted. They did say I can make voluntary payments online. I immediately made a payment online.
The day of discharge, my TransUnion (only reporting on Transunion) updated with a DFAS account in good standing, with an account balance of the 14K. I put in a ticket to askDFAS and asked what my repayment options are (they said none, but I can make voluntary payments). I then asked I make voluntary payments, will they report positive to this tradeline and they said yes. DFAS replies, (10 days post discharge) with "Your account has a BK active so as of now you shouldnt be making any payments until we reach a final decision on your BK case".
A few days later, my TU is updated the account to “60-89” days late. Today, I received a bill/statement from DFAS with a 14K balance, $0 past due amount with a payment due in 30 days for $150. Needless to say, I am very confused and at my wits end. DFAS has given me different stories and my lawyer, post discharge, wants to charge me $250/hour. Lol.
Questions:
- Can DFAS collect/report on a non-discharged debt during Chap. 7 (before discharge)? Should I dispute?
- When I make the $150/month payment, will they report on time payments?
Thanks and sorry for the ramble!
