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  4. Notifying DFAS of Bankruptcy

    Notify DFAS of Bankruptcy

    DFAS Garnishment Operations processes Chapter 13 and Chapter 7 Bankruptcy orders for:

    • all branches of the military, both active and reserve/guard components;
    • military retirees; and
    • civilian government employees of the following agencies:
      • Department of Defense
      • Health and Human Services
      • Department of Veterans Affairs
      • Environmental Protection Agency
      • Broadcast Board of Governors
      • Department of Energy
    Federal Bankruptcy law requires that all collection action stop once someone files a bankruptcy case. Collection actions include court-ordered commercial garnishments against civilian employees and involuntary allotments to enforce non-support judgments against active duty military members, as well as administrative debt collections from an employee or military member’s pay. 
     
    To ensure that all non-support garnishments and debt collections are stopped, a debtor employee or member or their attorney must send us Notice of the Bankruptcy. 

    How to Notify Us

    The Notice of Filing a Bankruptcy can be faxed or mailed to:
     
    Defense Finance and Accounting Services - Cleveland
    Attention: DFAS-HGA/CL
    P.O. Box 998002
    Cleveland, OH 44199-8002

     
    Toll-free Phone: 888-DFAS-411 (888-332-7411)
    Fax:   216-522-6960 (commercial)
    877-622-5930 (toll free)
    To ensure your document is processed in a timely and efficient manner you must include the following information on the fax document:
    • Member/Employee Social Security Number (SSN) - Court Orders/Documents will not be processed if the SSN is not on the document
    • Return phone number
    • Return fax number
    Upon receipt of a bankruptcy notice, we review the case to determine if there are any commercial garnishments, military involuntary allotments, or administrative debt collections that need to be stopped. This normally takes 1-2 weeks.
     
    It can take 1-3 weeks to stop a debt being withheld by DFAS, such as advanced pay, overpayments of pay and allowances and overpayment of travel pay. 
     
    Child support, alimony, child support arrears and alimony arrears are NOT terminated unless the bankruptcy order specifically directs us to terminate these withholdings.
    Page updated January 18, 2013.