111-9 TERMINATION OF CLAIMS
There are few instances when a claim is terminated or closed by BIRU, which removes a client's obligation to repay a claim.
To terminate a claim upon a death of a recipient or bankruptcy, BIRU will complete the following steps:
Update the case in EIS OVCM using Code 98 to designate the household's claim as terminated.
Notify the Treasure Offset Program (TOP) of the termination and closes the TOP claim.
Close the claim as terminated (written off) within i-Sight.
Terminating a claim reduces the balance owed to zero or all collection actions stopped. Claims will be terminated upon notification of a deceased recipient.
DPA may act behalf Food and Nutrition Service (FNS) in any bankruptcy proceeding against a household with outstanding recipient claims.
All and any collection claim activity will cease upon when DPA receives notification that the client has filed a bankruptcy. Any amounts made after the bankruptcy filing date must be refunded back to the client.
If the bankruptcy notice does not identify FNS or USDA, then the collection activity will continue.
| Previous Section | ||
| 2022-01 (04/22) |