Out of service debt $52,000

About twelve years ago I was a SSG on active duty. I reenlisted for 6 years, while deployed, and received a signing bonus of $32k.

A little under two years later I was convicted of a felony, in civilian court, and sentenced to prison for 4.5yrs. Obviously, I was separated during my state sponsored vacation.

I was expecting to have to pay back a prorated amount of that bonus since I didn't finish the contract I signed.

But I never heard anything from the military or DoD. Fast forward to a few weeks ago and a debt of $26k shows up on my credit report. FFIW I have excellent credit. I started making phone calls and doing some research.

The Department of Defense turned the debt over to the Department of the Treasury. They added another $13k in fees, bringing the total debt to $39k. Then the debt was turned over to their outside collection agency and they added more fees, bring the current total to $52k. And my employer got a wage garnishment notice, which they are ignoring for now. I spoke to the collection agency and they are fixed on the $52k, and are not interested in negotiating at all.

I was never notified of this debt, and the conventional wisdom (back in my day) is if they don't ask for money, don't say anything. So, I figured radio silence was a good thing, (very wrong apparently).

I'm not disputing the original debt at all, I owe the initial $26k. And I can pay that with cash from my retirement account.

If it's an option, I'm okay filing for bankruptcy. I filed once about 20 years ago when I was married. But really if I could just get the fees removed I'd be happy to pay the debt.

Anyone else every deal with this or anything similar?

I've posted this in a few other subs, but I haven't found anyone with a similar experience. Thanks for reading this, all input is much appreciated.

I am scheduled to meet with a lawyer in a few weeks.