**§1.923 Administrative wage garnishment.**

\(a\) In accordance with the procedures set forth in 31 U.S.C. 3720D and
31 CFR 285.11, VA or Treasury may request that a non-Federal employer
garnish the disposable pay of an individual to collect delinquent
non-tax debt owed to VA. VA may pursue wage garnishment independently in
accordance with this section or VA or Treasury may pursue garnishment
after VA refers a debt to Treasury in accordance with §1.910 of this
part and 31 CFR 285.12. For the purposes of this section, any reference
to Treasury also includes any private collection agency under contract
to Treasury.

\(b\) At least 30 days prior to the initiation of garnishment
proceedings, VA or Treasury shall send a written notice, as described in
31 CFR 285.11(e), by first class mail to the debtor's last known
address. This notice shall inform the debtor of:

\(1\) The nature and amount of the debt;

\(2\) The intention of VA or Treasury to initiate proceedings to collect
the debt through deductions from the debtor's pay until the debt and all
accumulated interest, and other late payment charges, are paid in full,
and;

\(3\) An explanation of the debtor's rights, including the opportunity:

\(i\) To inspect and copy VA records pertaining to the debt;

\(ii\) To enter into a written repayment agreement with VA or Treasury
under terms agreeable to VA or Treasury, and;

\(iii\) To a hearing in accordance with 31 CFR 285.11(f) and paragraph
(c) of this section concerning the existence or amount of the debt or
the terms of the proposed repayment schedule under the garnishment
order. However, the debtor is not entitled to a hearing concerning the
terms of the proposed repayment schedule if these terms have been
established by written agreement under paragraph (b)(3)(ii) of this
section.

\(c\) Any hearing conducted as part of the administrative wage
garnishment process shall be conducted by the designated hearing
official in accordance with the procedures set forth in 31 CFR
285.11(f). This hearing official may be any VA hearing official. This
hearing official may also conduct administrative wage garnishment
hearings for other Federal agencies.

\(1\) The hearing may be oral or written as determined by the designated
hearing official. The hearing official shall provide the debtor with a
reasonable opportunity for an oral hearing when the hearing official
determines that the issue in dispute cannot be resolved by review of
documentary evidence, for example, when the validity of the claim turns
on the issue of credibility or veracity. The hearing official shall
establish the time and place of any oral hearing. At the debtor's
option, an oral hearing may be conducted either in person or by
telephone conference call. A hearing is not required to be a formal,
evidentiary-type hearing, but witnesses who testify in oral hearings
must do so under oath or affirmation. While it is not necessary to
produce a transcript of the hearing, the hearing official must maintain
a summary record of the proceedings. All travel expenses incurred by the
debtor in connection with an in-person hearing shall be borne by the
debtor. VA or Treasury shall be responsible for all telephone expenses.
In the absence of good cause shown, a debtor who fails to appear at a
hearing will be deemed as not having timely filed a request for a
hearing.

\(2\) If the hearing official determines that an oral hearing is not
necessary, then he/she shall afford the debtor a "paper hearing." In a
"paper hearing," the hearing official will decide the issues in dispute
based upon a review of the written record.

\(3\) If the debtor's written request for a hearing is received by
either VA or Treasury within 15 business days following the mailing of
the notice described in paragraph (b) of this section, then VA or
Treasury shall not issue a withholding order as described in paragraph
(d) of this section until the debtor is afforded the requested hearing
and a decision rendered. If the debtor's written request for a hearing
is not received within 15 business days following the mailing of the
notice described in paragraph (b) of this section, then the hearing
official shall provide a hearing to the debtor, but will not delay
issuance of a withholding order as described in paragraph (d) of this
section, unless the hearing official determines that the delay in filing
was caused by factors beyond the debtor's control.

\(4\) The hearing official shall notify the debtor of:

\(i\) The date and time of a telephone conference hearing;

\(ii\) The date, time, and location of an in-person oral hearing, or;

\(iii\) The deadline for the submission of evidence for a written
hearing.

\(5\) Except as provided in paragraph (c)(6)of this section, VA or
Treasury shall have the burden of going forward to prove the existence
or amount of the debt, after which the debtor must show, by a
preponderance of the evidence, that no debt exists or that the amount of
the debt is incorrect. In general, this means that the debtor must show
that it is more likely than not that a debt does not exist or that the
amount of the debt is incorrect. The debtor may also present evidence
that terms of the repayment agreement are unlawful, would cause a
financial hardship, or that collection of the debt may not be pursued
due to operation of law.

\(6\) If the debtor has previously contested the existence and/or amount
of the debt in accordance with §1.911(c)(1) or §1.911a(c)(1) and VA
subsequently rendered a decision upholding the existence or amount of
the debt, then such decision shall be incorporated by reference and
become the basis of the hearing official's decision on such matters.

\(7\) The hearing official shall issue a written decision as soon as
practicable, but not later than 60 days after the date on which the
request for such hearing was received by VA or Treasury. The decision
will be the final action for the purposes of judicial review under the
Administrative Procedure Act (5 U.S.C. 701, *et seq*.). The decision
shall include:

\(i\) A summary of the facts presented;

\(ii\) The hearing official's findings, analysis, and conclusions, and;

\(iii\) The terms of the repayment schedule, if applicable.

\(d\) In accordance with 31 CFR 285.11(g) and (h), VA or Treasury shall
send a Treasury-approved withholding order and certification form by
first class mail to the debtor's employer within 30 days after the
debtor fails to make a timely request for a hearing. If a timely request
for a hearing has been filed by the debtor, then VA or Treasury shall
send a withholding order and certification form by first class mail to
the debtor's employer within 30 days after a final decision is made to
proceed with the garnishment. The employer shall complete and return the
certification form as described in 31 CFR 285.11(h).

\(e\) After receipt of the garnishment order, the employer shall
withhold the amount of garnishment as described in 31 CFR 285.11(i) from
all disposable pay payable to the applicable debtor during each pay
period.

\(f\) A debtor whose wages are subject to a wage withholding order under
31 CFR 285.11 may request a review, under the procedures set forth in 31
CFR 285.11(k), of the amount garnished. A request for review shall only
be considered after garnishment has been initiated. The request must be
based on materially changed circumstances such as disability, divorce,
or catastrophic illness which result in financial hardship that limit
the debtor's ability to provide food, housing, clothing, transportation,
and medical care for himself/herself and his/her dependents. (Authority:
31 U.S.C. 3720D; 38 U.S.C. 501; 31 CFR 285.11).

\[69 FR 62196, Oct. 25, 2004, as amended at 72 FR 65462, Nov. 21, 2007\]

**Supplement *Highlights* reference**: 80(1)