Federal · Title 31 — Money and Finance

31 U.S.C. § 3728: Setoff against judgment

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The Secretary of the Treasury shall withhold paying that part of a judgment against the United States Government presented to the Secretary that is equal to a debt the plaintiff owes the Government. discharge the debt if the plaintiff agrees to the setoff and discharges a part of the judgment equal to the debt; or withhold payment of an additional amount the Secretary decides will cover legal costs of bringing a civil action for the debt if the plaintiff denies the debt or does not agree to the setoff; and have a civil action brought if one has not already been brought. If the Government loses a civil action to recover a debt or recovers less than the amount the Secretary withholds under this section, the Secretary shall pay the plaintiff the balance and interest of 6 percent for the time the money is withheld.

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