111-9          TERMINATION OF CLAIMS

 

There are few instances when a claim is terminated or closed by BIRUBenefit Issuance & Recovery Unit, which removes a client's obligation to repay a claim.

 

To terminate a claim upon a death of a recipient or bankruptcy, BIRUBenefit Issuance & Recovery Unit will complete the following steps:

 

  1. Update the case in EISEligibility Information System OVCM using Code 98 to designate the household's claim as terminated.

  2. Notify the Treasure Offset Program (TOPTreasury Offset Program) of the termination and closes the TOPTreasury Offset Program claim.

  3. Close the claim as terminated (written off) within i-Sight.

 

111-9 A.      DEATH OF RECIPIENT

 

Terminating a claim reduces the balance owed to zero or all collection actions stopped. Claims will be terminated upon notification of a deceased recipient.

 

111-9 B.      BANKRUPTCY CLAIMS

 

DPADivision of Public Assistance 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 DPADivision of Public Assistance 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 FNSFood and Nutrition Service or USDAUnited States Department of Agriculture, then the collection activity will continue.

 

 

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    2022-01 (04/22)