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B-195006 1 (1980-09-22)

handle is hein.gao/gaobadioq0001 and id is 1 raw text is: 




                   ~   'THE   COMPTROLLER GENERAL
 DECISION      .          OF  THE   UNITED STATES
                          WASHINGTON .       C. 20548



 FILE: B-195006                DATE:   September 22, 1q80

 MATTER   OF: Wesley T. Smith, RMI, USN


 DIGESTMember  of the Navy filed a voluntary petition
        in bankruptcy in which he listed the Government
        as a creditor.  Prior to the date the Petition
        was filed the United States was indebted to the
        member for accrued leave rations. Before the
        petition was filed the Government deducted the
        amount owed for leave rations from an outstanding
        debt the member owed the Government. The filing
        of the petition did not .affect thec(overnment's
        action to set off7 and that action effectively
        constituted paymtr t of the amount due the member
        and reduction of his debt prior to the date the
        petition in bankruptcy was filed.

     The issue in this case is whether the United States
is indebted to a Navy member for leave rations which
accrued prior to the date the member filed a voluntary
petition in bankruptcy. Prior to the date the member
filed his petition, the Navy deducted the amount owed
him for leave rations from an outstanding debt the
member owed the Navy. Since the Government retained
the right to set off the amount owed him for leave
rations against the member's debt until the date the
bankruptcy petition was filed the setoff was proper and
the Government is not.indebted to the member for the
leave rations.

     The question was presented for an advance decision
by J.T. Gill, Disbursing Officer, USS Merrill (DD-976),
and was assigned submission number DO-N-1326 by the
Department of Defense Military Pay and Allowance
Committee.

     On March 1, 1979, Radioman Ist Class Wesley T.
Smith, USN, filed a voluntary petition in bankruptcy
in the United States District Court, Southern District
of California. In the petition the member scheduled
the United States Navy as a creditor in the amount of
$1,129. The indebtedness stemmed from an overpayment

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