United States Code

USC most recently checked for updates: Jan 30, 2023

§ 3728.
Setoff against judgment
(a)
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.
(b)
The Secretary shall—
(1)
discharge the debt if the plaintiff agrees to the setoff and discharges a part of the judgment equal to the debt; or
(2)
(A)
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
(B)
have a civil action brought if one has not already been brought.
(c)
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.
(Pub. L. 97–258, Sept. 13, 1982, 96 Stat. 977; Pub. L. 104–316, title II, § 202(p), Oct. 19, 1996, 110 Stat. 3844.)
cite as: 31 USC 3728