In the event a payment agreement is reached, either prior to,
or after, judgment in a case involving a Department of Veterans
Affairs (VA) educational allowance claim, the United States
Attorney may utilize the VA's Debt Management Center (DMC) in St.
Paul, Minnesota, to monitor the payments and close the file
pursuant to USAM 4-3.230 USAM4-3.230.
See USAM 4-3.231 USAM4-3.231.
The DMC monitoring system may be used for all existing
post-judgment accounts. Pre-judgment accounts can be monitored
provided that three consecutive timely payments have been received
on existing accounts. However, pre-judgment accounts which involve
garnishments are not included in the DMC monitoring system.
DMC must have a notification letter on all pre- and
post-judgment accounts to be monitored. The letter of notification
is also necessary with respect to existing post-judgment accounts.
The notification should identify the account by the debtor's full
name and VA file number, and state the monthly payment amount as
well as the day of the month the payment will be due.
Post-judgment cases will stipulate interest, U.S. Marshals' fees,
and court costs. All payments must be on a monthly basis.
The USAO should inform the debtor that all payments must be
made payable to the VA and mailed directly to the VA, Post Office
Box 11930, Federal Building, Fort Snelling, St. Paul, Minnesota
55111. DMC will furnish a receipt to the debtor. The USAO should
advise the debtor that the VA will be monitoring the account and
that the VA will inform its attorney if the account becomes
delinquent. The USAO's letter should warn the debtor of the
consequences of the failure to maintain payments.
The monitoring system will work as follows: the VA will
generate a letter to the debtor when a payment is 30 days
delinquent. If payment on the account is not received within 40
days after dispatch of the delinquent letter to the debtor, the VA
will notify the United States Attorney. If after issuance of the
forty-day notice a payment is received, the VA will notify the
United States Attorney. If no payment is received within 90 days,
the VA will notify the United States Attorney that the VA has
ceased monitoring the case. The notification will set forth
criteria for reestablishing the account under the monitoring
All correspondence from the debtor requesting deviation from
the repay agreement will be forwarded to the USAO for appropriate
action. The United States Attorney will notify DMC of any change
in the repay agreement.
Questions and problems concerning the monitoring of pre- and
post-judgment accounts should be directed to Rose Johnson, Unit
Chief, Litigation Referral and Disposition Section, at (800)
827-0648 or (612) 725-3485/3100.
[updated May 1998]
[cited in USAM 4-3.231]