Administrative Wage Garnishment (AWG)
In order to challenge an AWG Notice from the Department of Housing & Urban Development (HUD), you must submit a Request for Hearing sent by the Treasury’s Bureau of Fiscal Service prior to the expiration deadline stated in the Notice.
You may assert substantive challenges to the legal enforceability or existence of the debt, the amount of the debt and/or prove that the proposed garnishment order will cause you financial hardship. Once a Request for Hearing is timely submitted, your case is transferred to HUD’s Office of Appeals (OA) court before an appointed HUD Administrative Law Judge (ALJ) in Washington, D.C.
HUD ALJs conduct reviews of administrative wage garnishment cases under 24 C.F.R. § 17.170 and 31 C.F.R. § 285.11(f). The ALJs encourage the parties to settle cases by agreement, if possible, using Alternative Dispute Resolution (ADR) where necessary. Otherwise, the ALJ considers the facts established by the record, and applies the appropriate federal statutes, regulations and case law to arrive at a Decision.
The Secretary of HUD is represented by a HUD Attorney from the Office of General Counsel. The ALJ issues a case management order settingdeadlines for the parties to exchange administrative discovery, submit pleadings, statements, briefs and evidentiary documents.
After the record has been established with the OA court, the ALJ will then render a Decision and Order with its findings. If the ALJ’s Decision is adverse, and you do not agree with the findings, your recourse would be to file a complaint for judicial review in the federal district court where you reside. Hence, it is important you initially try to put your best foot forward bynot representing yourself in these types of actions.
Clearly, if you are served with an AWG Notice from Treasury’s Bureau of Fiscal Service stemming from a defaulted HUD loan or HUD debt, it would be wise to retain qualified legal counsel to represent you before the HUD’s OA court. The Secretary of HUD is represented by legal counsel and you should be too.
Call us Toll Free at 1-888-756-9968 or submit your contact information to speak to one of our AWG Attorneys about your HUD case.
Treasury Offset Program (TOP)
In addition, HUD ALJs conduct reviews of cases involving administrative offset of various federal payments due debtors who have a past-due debt obligation to HUD under 24 C.F.R. § 17.150-17.161. The ALJs also decide federal salary offset cases for agencies outside of HUD. Decisions of the ALJs in offset cases are final agency decisions. The Administrative Law Judges also decide cases relating to limited denial of participation, debarment, and suspension from federally-backed or federal financial-assistance programs under 2 C.F.R. Part 180 and 24 C.F.R. Part 26, Subpart A.