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.
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2022-01 (04/22) |