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B-193965 1 (1979-07-09)

handle is hein.gao/gaobadhjl0001 and id is 1 raw text is: THE COMPTROLLER GENERAL DECISION . . OF THE UNITED STATES WASHINGTON, D C. 20548 FILEB-193965 DATE: July 9, 1979 MATTER OF:Harold S. Fenner - Bankruptcy Order DIGEST: At the time of his death a VA employee was subject to a Wage Earners' Plan under Chapter XIII of the Bankruptcy Act. The Bankruptcy Judge issued an order requiring unpaid compensation due the employee at the time of death to be paid to the Trustee of the Chapter XIII Plan. The VA had also received a claim from surviving children under 5 U.S.C. § 5582, seeking the same money. The order of the Bankruptcy Judge may not be followed since there is no waiver of sovereign immunity sufficient to permit enforcement of the order against United States in the face of the competing claim based upon a specific statutorily granted right. This matter arises from a submission by the Veterans Administration (VA) Hospital in East Orange, New Jersey, in which they requeste guidance regarding theLdIisposition of unpaid .pompensation owed to a VA employee, Mr. Harold S. Fender, Jr., at the ti e of his death on November 4, 1977. The VA has received competing claims for the unpaid compensation from a Trustee in Bankruptcy and the deceased employee's children. We hold that, the children are entitled to the compensation as provided in 5 U.S.C. § 5582 (1976). On April 19, 1973, an order confirming a Wage Earners' Plan under Chapter XIII of the Bankruptcy Act, 11 U.S.C. SS 1011 et seq., submitted by Harold S. Fenner and Doris F. Fenner, his wife, was entered in the United States District Court for the District of New Jersey. However, prior to his death Mr. Fenner was divorced, and, thus, he left no surviving spouse. Under the terms of the order he was to make weekly payments of $32 to the Trustee appointed to administer his plan. We have ascertained that his salary checks were always sent to his home address and at no time did he execute an assignment authorizing the VA to send his salary directly to the Trustee.

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