B-157854, OCT. 28, 1965

B-157854: Oct 28, 1965

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WHICH AROSE BY REASON OF DEFAULT ON A HOME LOAN WHICH WAS GUARANTEED BY THE VETERANS ADMINISTRATION. YOU HAVE PREVIOUSLY OFFERED TO LIQUIDATE THIS INDEBTEDNESS AT THE RATE OF $15 PER MONTH THROUGH DEDUCTIONS FROM YOUR SALARY AS AN EMPLOYEE OF THE FEDERAL AVIATION AGENCY. YOU ADVISE THAT YOU WERE RECENTLY INJURED IN AN AUTOMOBILE ACCIDENT AND THAT THE ATTENDING EXPENSES HAVE NECESSITATED THE DEFERMENT OF OTHER OBLIGATIONS. FOR THIS REASON YOU STATE THAT YOU FEEL THAT THE OFFER OF PAYMENT AT THE RATE OF $15 PER MONTH IS NOT ONLY REASONABLE. IN PREVIOUS CORRESPONDENCE CONCERNING THIS MATTER WE HAVE REQUESTED THAT CERTAIN INFORMATION AS TO YOUR FINANCIAL STATUS BE MADE AVAILABLE TO THIS OFFICE.

B-157854, OCT. 28, 1965

TO MR. RONALD SCHLOSSER:

BY LETTER DATED SEPTEMBER 20, 1965, YOU AGAIN WROTE TO OUR OFFICE CONCERNING THE PAYMENT OF YOUR DEBT IN THE PRINCIPAL SUM OF $1,813.87, WHICH AROSE BY REASON OF DEFAULT ON A HOME LOAN WHICH WAS GUARANTEED BY THE VETERANS ADMINISTRATION.

YOU HAVE PREVIOUSLY OFFERED TO LIQUIDATE THIS INDEBTEDNESS AT THE RATE OF $15 PER MONTH THROUGH DEDUCTIONS FROM YOUR SALARY AS AN EMPLOYEE OF THE FEDERAL AVIATION AGENCY. OUR OFFICE HAS REJECTED THIS OFFER BECAUSE, ON THE BASIS OF THE INFORMATION AT HAND, WE DO NOT FEEL THAT SUCH PAYMENTS WOULD CONSTITUTE TIMELY LIQUIDATION OF THE INDEBTEDNESS.

IN YOUR LETTER OF SEPTEMBER 20, YOU ADVISE THAT YOU WERE RECENTLY INJURED IN AN AUTOMOBILE ACCIDENT AND THAT THE ATTENDING EXPENSES HAVE NECESSITATED THE DEFERMENT OF OTHER OBLIGATIONS. FOR THIS REASON YOU STATE THAT YOU FEEL THAT THE OFFER OF PAYMENT AT THE RATE OF $15 PER MONTH IS NOT ONLY REASONABLE, BUT QUITE GENEROUS. YOU ALSO STATED THAT YOU KNOW OF ANOTHER GOVERNMENT EMPLOYEE WITH A LARGER DEBT WHO HAS BEEN GRANTED PERMISSION TO MAKE TIMELY PAYMENTS IN SMALLER AMOUNTS THAN THOSE OFFERED BY YOU.

IN PREVIOUS CORRESPONDENCE CONCERNING THIS MATTER WE HAVE REQUESTED THAT CERTAIN INFORMATION AS TO YOUR FINANCIAL STATUS BE MADE AVAILABLE TO THIS OFFICE. IN YOUR LETTER OF SEPTEMBER 20 YOU ADVISE THAT YOU HAVE NO RECOLLECTION OF RECEIVING SUCH REQUEST AND YOU THEN DETAIL OBJECTIONS YOU HAVE TO FURNISHING SUCH INFORMATION.

THE GENERAL ACCOUNTING OFFICE IS CHARGED WITH THE RESPONSIBILITY OF COLLECTING DEBTS DUE THE UNITED STATES. IN MEETING THIS RESPONSIBILITY EVERY EFFORT IS MADE TO ACCOMMODATE DEBTORS IN SUCH MANNER AS TO AVOID UNDUE HARDSHIP ON THEM AND THEIR FAMILIES. HOWEVER, IN ORDER FOR THIS OFFICE TO AFFORD DEBTORS WITH THE OPPORTUNITY TO PAY DEBTS ON AN INSTALLMENT BASIS AND AT THE SAME TIME EXPEDITIOUSLY SETTLE ACCOUNTS DUE THE GOVERNMENT, WE FIND IT ESSENTIAL TO OBTAIN INFORMATION WHICH WILL FORM A BASIS FOR REACHING AGREEMENT ON AN APPROPRIATE PAYMENT SCHEDULE.

IT IS FOR THIS REASON AND THIS REASON ALONE THAT WE REQUEST FINANCIAL INFORMATION FROM DEBTORS. YOU SEEM TO FEEL THAT IT IS UNJUST FOR OUR OFFICE TO ASSUME THAT YOU ARE ABLE TO MAKE MORE EXPEDITIOUS PAYMENTS BASED ON YOUR PREVIOUS SALARY. IT MAY BE THAT YOUR PRESENT SALARY IS LESS THAN YOUR PREVIOUS SALARY AND THAT, DUE TO SUCH MATTERS AS THE UNEXPECTED MEDICAL EXPENSES THAT YOU MENTION IN YOUR LETTER OF SEPTEMBER 20, YOU ARE UNABLE TO MAKE MORE TIMELY PAYMENTS. HOWEVER, ABSENT THE INFORMATION REQUESTED, OUR OFFICE MUST MAKE ITS DETERMINATION ON THE BASIS OF THE INFORMATION WE HAVE.

THERE IS ENCLOSED A FORM C-31 (A) WHICH WE REQUEST THAT YOU FILL OUT AND SUBMIT. IT MAY BE THAT FROM THE INFORMATION REQUESTED ON THIS FORM, OUR OFFICE CAN FIND A BASIS FOR AGREEING TO YOUR PAYING THIS DEBT ON AN INSTALLMENT BASIS. ABSENT SUCH INFORMATION, WE MUST MAINTAIN OUR PREVIOUS POSITION AND TAKE SUCH ACTION AS MAY BE NECESSARY TO PROTECT THE INTEREST OF THE UNITED STATES.