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Question
My son enlisted in the Army in June 2006. He has a history of mental health issues and at the time he enlisted was living in a sober living house. He completed his basic training and AIT. After being assigned to his permanent duty station, he tested positive for drugs and was released from the Army. While at his permanent duty station he was given a signing bonus. The Army is now demanding that he repay over $9000. My son is currently homeless but has found part time work at the Goodwill. What is his recourse?
I would expect that he will have to repay the bonus. The government may take any tax refunds he gets in the future until the debt is paid. There is probably no way out of this. Of course he cannot pay what he doesn't have so right now they wont do much until he finds gainful employment then they could levy his paycheck. If this happens he may file a chapter 13 bankruptcy or contact the collection agency and set up a payment plan.
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Answers by Expert:
Michael Brotherton
Expertise
Consumer/Debtor Rights Advocate. Mike Brotherton is a negotiator with over 30 years experience in consumer lending and collections. Mike has 30 years in the credit and collections industry as a former loan officer, debt collector and manager of two finance companies over several years. Mike is well versed in Loss Mitigation practices and the legal collection process. He has helped literally thousands of people over many years overcome serious financial problems such as foreclosure, creditor lawsuits and abuse by debt collectors. For more information about resolving your "financial emergency" visit www.financialemergency.com. FinancialEmergency.com is a consumer web site which actively promotes Fair Debt Collection Practices and other consumer protection laws. We teach DEBTOR RIGHTS and enforcement of those rights. The more informed you are of your rights and the credit collections practices of creditors the more peace you can have dealing with your FINANCIAL EMERGENCY. Most financial problems are fairly common and as such have some very common solutions. The key is understanding your rights in the collection process and how to enforce them if need be. Primary business- Debtor Rights Advocacy and Debt Mitigation relating to foreclosure, creditor lawsuits, and other serious financial problems. www.financialemergency.com (copy and paste in browser).
Experience
Over 40 years combined experience negotiating disputes and resolving financial issues related to consumer debt, corporate issues and mortgage modifications.
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