INDEBTEDNESS

INDEBTEDNESS- GENERAL
The general policy is that members indebted to the United States will be encouraged to discharge their debts through check/money order payments when possible. Otherwise members will be encouraged to voluntarily accept liability for their indebtedness and to agree to make periodic check/money order partial payments. Collection of debts by payroll deduction (and the preparation of DD Form 139) should be as a last resort. 

NOTIFICATION OF INDEBTEDNESS. The member must be notified of the debt by the activity holding the debt. A member indebt for overpayment of pay and allowances will be notified through their LES. It will appear on the LES as 

ADVANCE DEBT. Members are also notified by Finance via email. If you are unsure of what the indebtedness is for, contact Finance right away. Members indebted for other than pay and allowances will be notified in writing by the originating office (example: a member in debt for Tuition Assistance will be notified by the Education Office). 

TYPES OF DEBT
Overpayment of Pay and Allowances: A member may become overpaid for pay and allowances due to stop or change to an entitlement. The indebtedness may be computer generated or input directly by the FSO or DFAS-DE.
Report of Survey: A member may become indebted to the United States by being held pecuniary liable for government property lost, damaged, or destroyed. 

Excess Cost of HHG/Trailer Move: Indebtedness for excess cost is created when a member's shipment of household goods (HHG) exceeds the authorized weight allowance or the shipment of a house trailer exceeds the authorized mileage rate. The Defense Finance and Accounting Service - Indianapolis Center (DFAS-IN) receives the carrier's bill and makes the payment for the shipment. DFAS-IN makes an initial determination as to whether the member has a potential excess cost based on the billing from the carrier and the member's authorized weight allowance or mileage rate.
Miscellaneous Indebtedness 

Overpayment of Advance Travel and Travel Costs: Indebtedness for overpayment of advance travel is generated when a member files a DD Form 1351-2, Travel Voucher, or when an advance travel payment is made and the member does not perform the travel. 

Cost-Charge Transportation Request (TR): A member on leave in your area may be issued a TR for return travel to his/her duty station. The cost of this TR is deducted from the member's pay. 

Damage to Family Housing Unit or Unaccompanied Personnel Housing Unit (Dormitory): A member may become indebted as a result of a report of survey that assesses liability for damage, failure to satisfactorily clean or loss of equipment or furnishings to family housing or dormitories (see AFMAN 23-220). 

Housing: a member may become indebted to the housing office for failure to adequately clean government quarters on termination of quarters. The housing office must notify the member of the charges and request payment.
Air Force Education Assistance: Upon determination that a member is in debt for Air Force educational assistance, the education office must notify the member of the amount of the debt. 

Do-It-Yourself (DITY) Move: A member may become indebted for exceeding the authorized weight allowance when shipping personal property through the use of a rental truck or trailer or privately owned or borrowed pickup truck or trailer.
Telephone and Utility Bills and Trailer Space Rental: A member may become indebted to the government for charges of telephone bills, utility bills (under AFR 90-3), and trailer space rental. 

Billeting: A member may become indebted to the billeting office for failure to pay the charges for government quarters while on leave or TDY. When a member checks out of quarters, he or she is required to clear through the billeting office and pay for the charges at that time. 

Salary Offset: In accordance with the Debt Collection Act of 1982 and 5 U.S.C. 5514, DJMS-AC provides salary offset collections from members pay to non-DoD agencies (example: delinquent Government Travel Card bill).
Other Miscellaneous Debts: Debts listed below are collected using the procedures in this paragraph. These collections are involuntary. 

These debts include the following:
(1) Education assistance. (VA over-payments require member's consent for collection.)
(2) All library charges.
(3) Services (Club, Youth Center, Child Development Center debts)
(4) Air Force Aid Society
(5) Army Air Force Exchange Service (AAFES) 

REPAYMENT OF INDEBTEDNESS
The activity generating the debt is responsible for providing notification of the existence of the debt and due process to the debtor. Initial notification will include a demand for immediate payment in full of the debt. 

When the member is financially unable to pay the debt in one lump sum, payment may be accepted in regular installments. Member must contact Finance to set up a repayment schedule. Debts are deducted in one lump sum from the member's pay not to exceed two thirds of the member's pay less (a) amounts deducted in arriving at disposable pay and (b) amounts collected under 5 U.S.C. 5514. A greater percentage is authorized by written consent of the member. 

Accelerating Collection of Debts: when a member is pending separation, the member's pay record will be checked to determine the collection status of any debts. Any debt which will not be collected by date of separation (DOS) must be reviewed and collection increased per DoDFMR, Volume 7A, chapter 50, table 50-6. 

REMISSION OF INDEBTEDNESS
Remission: An enlisted member on active duty, or his/her commander, may apply for remission of the enlisted member's indebtedness to the United States. Only enlisted members may apply for remission. 

The debt may not be remitted or canceled after the member is discharged, retired, or released from active duty. An indebtedness arising in one period of active duty may, however, be remitted during a later period of active duty. Generally, any indebtedness may be considered for remission (including those listed in the DoDFMR, Volume 7A, chapter 50, tables 50-1, 50-3 and 50-4). Debts for erroneous payments may be processed for remission even if a relief action had been denied under appeal provisions first. However, debts arising from excess leave and erroneous payment of basic pay due to non-collection of court martial forfeitures may not be remitted or canceled. Recoupment of a bonus upon early separation and advance leaves which become excess upon separation may not be given remission consideration as there is no debt until discharge and the member is then no longer on active duty. Only the uncollected portion of a debt can be considered for remission. The debt must be within Air Force jurisdiction. 

Waiver: A member may apply for waiver of claims of the United States against a member arising out of an erroneous payment of pay and allowances including travel or transportation allowance made after 28 Dec 1985, if recovery is determined to be against equity and good conscience and not in the best interests of the United States. Generally, the criteria will be met by a finding that the erroneous payment occurred through administrative error and that there is no indication of fraud, misrepresentation, fault, or lack of good faith on the part of the member or any other person having an interest in obtaining a waiver of the claim. 

To apply for a Remission or Waiver, fill out the following form(s) and turn in to Finance with any supporting documentation:
DD Form 2789 - Remission of Indebtedness
AF Form 2451 - Financial Statement (If applying for remission/waiver due to financial hardship) 

FOR QUESTIONS ABOUT DEBTS CONTACT: Finance Special Actions at (907) 552-7933 or 7981