Update and more ??s
I haven't been able to see an attorney yet, but I did do some research.
Apparently SSDI benefits can be administratively offset, IF the benefits total more than $9,000.00 per year. My SSDI is a little under $6,000.00 per year, so that is not a way for FEMA to collect. I do not own any assets that can be taken or liened, the only thing I own is a 1998 chevy cavalier, so there's no way they can collect anything that way. My checking account has only my SSDI payments in it, so that cannot be touched.
I was worried because FEMA has what they call the "household rule", meaning that any one person who recieves assistance, the debt becomes a household debt. Well, I found that a few months ago that a Federal Judge issued an injunction preventing FEMA from using the household rule. This means that since the grant was in my name only, to replace a MH that I soley owned, they cannot go after my husband for payment.
I also found that I can write a letter and ask for a hardship waiver, which I was going to do. However, something that strikes me strange has happened.
Last week I recieved a letter from an attorney in TX stating that FEMA/US treasury has turned my debt over to them for collection. I have 30 days from the date of the letter in which to contest the validity of the debt.
I really don't know what to do, at first I was confused because it didn't make sense that the fed gov't who has more power to collect than any other entity does, would turn the debt over to an attorney. However, once I started thinking about it I began to think this:
This debt is uncollectable through legal means by the treasury dept or FEMA. However, I'm wondering if it is collectable as a regular judgement and that's why they turned it over to an attorney.
I'm not familiar with what can be done when a judgement is issued.
If they get a regular judgement against me, can they garnish my SSDI?
Can they garnish my husband's wages?
What kind of collection action can be taken by a court when a judgement is issed in a situation like this?
One thing I have learned though, is that a federal debt is not discahrgeable in bankruptcy, but regular judgements are. If a judgement is issued, would I be able to discharge it in bankruptcy?
I'm going to try to see a local attorney, but I still would like to hear other's opinions on whay the giv't would turn to a private attorney and what I can do to protect myself.
Thanks, Gracie
