UBCNews - Business - Bureau of Fiscal Service Garnishment: No Statute of limitations on federal debts

Episode Date: November 16, 2025

Many SBA borrowers think the loan will eventually “time out.” It won’t. Once a loan goes to the Bureau of the Fiscal Service, Treasury collections do not expire. SBA & Federal Debt Advisory Services City: Hutto Address: 143 Exchange Blvd - Suite 300-41 Website: https://www.nontaxdebthelp.com

Many SBA borrowers think the loan will eventually time out. It won't. Once a loan goes to the Bureau of the Fiscal Service, Treasury collections do not expire. Exactly. Treasury uses administrative tools, not court cases. The two to know are administrative wage garnishment and the Treasury Offset Program.

They can run at the same time and continue until the balance is resolved. Will you quickly define them? Administrative wage garnishment, or A.E. can withhold up to 15% of disposable pay after the notice of intent to initiate wage garnishment has been mailed. You will have chance to request a hearing. The Treasury Offset Program, Top, reduces certain federal payments like tax refunds and some social security benefits. Supplemental security income is excluded by rule. So waiting is not a good strategy.

What should happen first when collection letters arrive? Request proof of debt. If the debt appears to be invalid, then submit a dispute with documents that support your claim. If a notice of intent to initiate wage garnishment arrives, consider requesting a hearing on existence, amount, or hardship. And now we will take a quick break and receive a word from our sponsor. Are you facing wage garnishment from a federal agency? You don't have to handle this alone. SBA and Federal Debt Advisory Services offers expert guidance through the intricacies of federal debt resolution. We assist individuals in understanding their rights, preparing for hearings, and developing strategic responses to protect their income.

Hi, welcome back. I wonder if you request a hearing, does that stop the collection process? A timely hearing request can prevent AWG from starting while you are waiting for a decision to be made. A late request may not pause withholding immediately. Also, you do not show up for a hearing in person. Hearings are a records review of your evidence and the agency's evidence, and results are sent by mail. Important note, a wage garnishment hearing does not pause treasury offsets. What about payment arrangements?

A voluntary payment arrangement approved during the notice period can sometimes prevent AWG from starting. If garnishment has already begun with the employer, the order generally continues unless there's a specific approval to reduce or release it, such as for hardship. Treasury offsets continue while a plan is in place. Listeners ask about settling for less, an offer in compromise. A compromise may be reviewed in some cases based on complete financial disclosure and documentation. Approval is on a case-by-case basis and what the agency will allow, and approval. is not guaranteed. Collections can continue during review unless a specific hold or reduction

is approved. For context, federal agencies collected over 23 billion in delinquent non-tax debt in a recent year. So these programs are very active. Right, and the key takeaway is simple. Time doesn't stop administrative collection. Action does. By correcting errors, documenting hardship, and using the procedures that exist. Is there a quick checklist for anyone in this situation? Three items. Request proof of debt and a transaction history that reconciles to the claimed balance. Request a hearing if a wage garnishment notice arrives.

Existence, amount, or hardship. Gather financial documents for either a hardship review, a payment arrangement, or a compromise package. Tell us what not to do. Do not ignore letters. Do not wait for a statute of limitations to run out. Administrative collection doesn't expire. Do not assume a private debt strategy applies to federal programs. Use the rights that exist and keep records organized.

What should borrowers do if they find themselves facing collections? First, call the number in the letter and get as much information as possible. Second, if you are feeling overwhelmed, then visit SBA, and Federal Debt Advisory Services website at HTTPS. www.w.w.com and request a free consultation. Anything else listeners should keep in mind? The Bureau of the Fiscal Service does not allow more than one hearing to consider the existence or the amount of the debt,

unless you provide new evidence that was not considered during the first hearing. You are allowed to have more than one hardship hearing. Let's make sure the Social Security point is clear before we wrap. Treasury can offset some Title II Social Security benefits, but supplemental security income is excluded by rule. Offsets are also limited to a portion of the benefit. That is why getting the facts and the numbers correct matters. Let's recap what the bottom line is for today's topic.

Time does not stop Treasury collections. Administrative wage garnishment and the Treasury offset program can both continue until the balance is resolved. Action helps. Use the right steps and meet deadline.