Understanding CAIVRS: What Is It and How to Get Off the List?

Let me give you an analogy to make things clear. Imagine you’re given a black mark for a financial misstep you took in the past, and now it’s prohibiting you from obtaining certain federal financial benefits. It’s not something you’d want, right? This is exactly what being on the CAIVRS list is like.

Decoding CAIVRS

Let’s cut to the chase. CAIVRS stands for the Credit Alert Verification Reporting System. It’s like a naughty list created by the U.S. Department of Housing and Urban Development (HUD) back in June 1987. It’s basically a database that keeps tabs on folks who’ve defaulted on Federal debts. This might include things like direct federal loans or other types of federal aid.

The crucial part you need to remember is that if your name turns up on the CAIVRS list, and you want to get an FHA loan or any other type of federal backing, you’ll be stopped at the door.

The Legal Perspective on CAIVRS

Getting more into the weeds, according to standards prescribed by the Secretary of the Treasury, if you’ve got an outstanding debt with any federal agency (excluding tax-related debts under the Internal Revenue Code of 1986) and it’s in a delinquent status, you’re not getting any Federal financial assistance in terms of loans or loan insurance.

Keep in mind, this rule applies to everyone owing an outstanding non-tax debt in delinquent status – no exceptions. It even applies to guarantors. And trust me, if you defaulted on an SBA loan, you’ve likely signed a personal guarantee.

So, Can I Get Off CAIVRS?

In case you’ve found yourself on this list, let’s discuss a few things you can do to ogle that ‘delinquent’ tag.

Firstly, your path of least resistance is paying the debt. Once it’s paid, it’s not delinquent anymore.

Another option is to get a waiver from the originating agency. This means, if the SBA flags you for a defaulted loan, you can apply to the agency for assistance to resolve this issue.

Lastly, if you can demonstrate that the debt isn’t legally delinquent, you might get away with it. Typically, a debt falls into the ‘delinquent status’ category if it isn’t paid within 90 days of the due date. This could be the date specified in the agency’s initial written demand for the money you owe, or a specific date in an applicable agreement.

Overcome CAIVRS – You Can Do It

If your name came up on the CAIVRS list and it’s hindering you from getting government-backed loans, don’t panic – there are ways for you to be released.

Why Choose Lawscape for Your Federal Debt Dilemmas?

The Lawscape has successfully resolved millions of dollars in SBA debts via Offer in Compromise and Negotiated Repayment Agreements. And we’ve done all of this without our clients having to file for bankruptcy or risking home foreclosure.

We’ve also been able to fend off countless instances of Treasury debts through AWG Hearings, Treasury Offset Program resolutions, cross-servicing disputes, private collection agency representation, compromise offers, and Negotiated Repayment Agreements.

Our ace attorneys, like Lawscape, are authorized by the Agency Practice Act to represent Federal debtors nationwide, including before the SBA, the SBA Office of Hearings and Appeals, the Treasury Department, and the Bureau of Fiscal Service.

So why not schedule a case evaluation today to ascertain your eligibility and explore your options? Trust me, we’ve got this.