CRSC and Debt

[brondeau09]

Good Morning,

Hopefully somebody will know the answer to this question either by experience or sound knowledge. A little back story. I was discharged as retired in 2014. Upon discharge I incurred a pretty large out of service debt due to a BAH over-payment which I am still currently fighting (another whole issue). Within the year of discharge, I filed a new VA claim and was awarded 50% as a combat related injury and granted TDIU. I was told that I qualify for CRSC and that I should submit for it. Now my question:

With this sizable out of service debt that I have, will they take all of my CRSC back pay if I am awarded it or are they only authorized to take a maximum amount? The back pay will be for less than the total debt that I owe DFAS but I am hoping that I can at least get some of it. Any sound answers to this would be greatly appreciated as I have been putting off applying for CRSC due to still trying to get a waiver processed for the debt which has been a fight since 2012. I am just not sure if the 40% max that DFAS can take stands true for out of service debt and also for back pay scenarios.

 

[gsfowler]

DFAS may collect on the debt by withholding up to 75% of the CRSC. You can appeal to have a lesser amount withheld or you can request that the debt get waived.

I had a BAH debt that I incurred (due to no fault of my own, it was an error of finance interpreting rules). I was not able to get the debt removed, however I requested a waiver and it was granted.

 

[brondeau09]

I had a BAH debt that I incurred (due to no fault of my own, it was an error of finance interpreting rules). I was not able to get the debt removed, however I requested a waiver and it was granted.

I have been trying to get a waiver for this debt but I have been thrown all over the place for it. Every packet ive sent in has been returned unprocessed for one reason or another. The last two packets I sent have not even been looked at. Ive even done a congressional which the response just said that the last packet needed adjustments but never mentioned anything about the two packets sent in after that lol.

 

[FloridaInjuredInCombat]

I have been trying to get a waiver for this debt but I have been thrown all over the place for it. Every packet ive sent in has been returned unprocessed for one reason or another. The last two packets I sent have not even been looked at. Ive even done a congressional which the response just said that the last packet needed adjustments but never mentioned anything about the two packets sent in after that lol.

I e-filed over a post service debt dispute, and about 4 months later they were kind enough to send me a form letter denial without addressing the dispute. In the form letter they indicated the next step is to file with the ABCMR (Army Board of Correction of Military Records), which I plan to do shortly.

Were you also directed to file with the ABCMR, and is that the entity that keeps kicking the packets back?

 

[brondeau09]

I e-filed over a post service debt dispute, and about 4 months later they were kind enough to send me a form letter denial without addressing the dispute. In the form letter they indicated the next step is to file with the ABCMR (Army Board of Correction of Military Records), which I plan to do shortly.

Were you also directed to file with the ABCMR, and is that the entity that keeps kicking the packets back?

Nope I keep getting told they need all different types of paperwork that they know I can no longer get being retired now for two years. They have not said anything yet about filing with the ABCMR

 

[eps17]

From my understanding 100% of any CRSC back paid owed will be applied to any debt on file. Then, whatever is left, is collected at a rate of 40% each future payment which is the maximum rate of garnishment per the regs.