Posted on Jan 23, 2019
Do I have to pay back my enlistment bonus when I am separated from the Army?
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I am getting chaptered because I failed the ABCP. I got off the program and busted tape less than a year later. Other than this, my service record is clean.
I have looked online and it seems everyone only talks about reenlistment bonuses. I am referring to an initial enlistment bonus.
It was to my understanding that the bonus was for attaining the MOS, not for the term of service. I attained the MOS and I believe I've been paid the full amount of the bonus.
My personal problem is that I used that money to pay off debts and get married. I simply do not have the money to repay the bonus and I'll go into deep debt if I owe it back.
Ultimately, I am going to sit down with a legal representative who can help me understand my case but I am asking generally, what should I expect?
I have looked online and it seems everyone only talks about reenlistment bonuses. I am referring to an initial enlistment bonus.
It was to my understanding that the bonus was for attaining the MOS, not for the term of service. I attained the MOS and I believe I've been paid the full amount of the bonus.
My personal problem is that I used that money to pay off debts and get married. I simply do not have the money to repay the bonus and I'll go into deep debt if I owe it back.
Ultimately, I am going to sit down with a legal representative who can help me understand my case but I am asking generally, what should I expect?
Posted 6 y ago
Responses: 5
You will pay back the prorated portion of the unearned portion of your bonus. The bonus is not for attaining the MOS. That would be ridiculous to say that the army paid you a bonus to send you to training.
The bonus, and this is written into law, is paid based upon the amount of service that you obligate yourself to. So, if your bonus was 3600 for 3 years, expect to pay $100 for every month early you separate. Also, you received your bonus amount after taxes were removed, but you'll pay back the pretax amount.
The Army isn't concerned with how you spent your money, only that you didn't uphold your end of the obligation. This is exactly how any civilalian contract works. If you accept money without finishing the job, you will owe that money back.
When you final out of finance they will give you a total of your debt. This is a financial matter so the only thing legal can do is point you to the law and regulation. They may tell you about appealing for remission of debt, and they may even help you prepare a letter, but it will not be approved. In this case, you are at fault due to your own negligence.
When you separate, you will incur a debt to US government. They will withhold your final pay, and your future tax returns until it is paid back
The bonus, and this is written into law, is paid based upon the amount of service that you obligate yourself to. So, if your bonus was 3600 for 3 years, expect to pay $100 for every month early you separate. Also, you received your bonus amount after taxes were removed, but you'll pay back the pretax amount.
The Army isn't concerned with how you spent your money, only that you didn't uphold your end of the obligation. This is exactly how any civilalian contract works. If you accept money without finishing the job, you will owe that money back.
When you final out of finance they will give you a total of your debt. This is a financial matter so the only thing legal can do is point you to the law and regulation. They may tell you about appealing for remission of debt, and they may even help you prepare a letter, but it will not be approved. In this case, you are at fault due to your own negligence.
When you separate, you will incur a debt to US government. They will withhold your final pay, and your future tax returns until it is paid back
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SFC (Join to see)
Alice San that is because that refers to the combat injury exclusion. Combat related injuries carry several protections.
There is a spreadsheet from DFAS somewhere that lists all separation codes and whether or not recoupment is authorized. In my discussion with my former transitions department, medical separation is never recouped.
There is a spreadsheet from DFAS somewhere that lists all separation codes and whether or not recoupment is authorized. In my discussion with my former transitions department, medical separation is never recouped.
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SFC (Join to see)
SPC(P) Brandon Jenkins a debt to the US is a debt to the department of Treasury. They will withhold your final pay, your tax return, and if necessary garnish your wages.
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Expect to pay it back IF they decide to recoup. If they do, it will be pro-rated from the amount of years you have served vs the amount left on the initial contract agreement. It should state on your contract the details for recoupment. This is generally speaking as well because every situation is different, goodluck.
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AR635-200, ch 1-20, b.
“Recoupment of the unearned portion of an enlistment or re-enlistment bonus is required by law (37 USC 308) when a Soldier is separated voluntarily or because of misconduct.
(1) In implementation of the law, DOD 7000.14–R, volume 7A, paragraph 0904, contains specific separation reasons for which bonus recoupment is required.”
Expect to pay something back, as you failed to fulfill your end of the contract.
“Recoupment of the unearned portion of an enlistment or re-enlistment bonus is required by law (37 USC 308) when a Soldier is separated voluntarily or because of misconduct.
(1) In implementation of the law, DOD 7000.14–R, volume 7A, paragraph 0904, contains specific separation reasons for which bonus recoupment is required.”
Expect to pay something back, as you failed to fulfill your end of the contract.
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