If the Department of Treasury has garnished or offset your federal salary because of an SBA loan default, you may have the opportunity to file an appeal.
The transcript of the video follows below for further review.
If you have defaulted on a Small Business Administration (SBA) loan and you are a federal employee, more than likely the Department of Treasury (DOT) will send you a notice stating that the DOT will offset your wages or salary, that is, take a portion of your paycheck every pay period until the debt is paid.
You can, however, appeal the wage garnishment or offset to the SBA’s Office of Hearing and Appeal (OHA). This course should not be pursued lightly and is not appropriate for a non-attorney or an inexperienced attorney in OHA cases.
The OHA assigns an administrative law judge (ALJ) to handle your appeal. The SBA will similarly assign an attorney to represent the SBA in the appeal. As stated, an OHA appeal amounts to a litigated case with provisions for motions, subpoenas, motions for summary judgment, etc. Moreover, if the law and provisions of the OHA appeal process are not followed, a petitioner may be subject to sanctions by the OHA. One should not be penny wise and pound foolish when it comes to appealing a federal salary offset or garnishment.
The OHA appeal of your federal salary garnishment or offset can, however, be an effective avenue to resolve your SBA loan default either by judicial decision or by settlement with the SBA. If you can prove that the debt does not exist or is not enforceable, you may secure relief from the debt and the wage garnishment or offset. A strong appeal may also convince the SBA that the debt should be settled rather than litigated in front of the OHA.
If you have defaulted on an SBA loan and are a federal employee, please contact Protect Law Group for a FREE consultation at 1-888-756-9969 or visit our website at www.sba-attorneys.com.
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