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ESA SNAP Policy Manual 256 23.6 Collection Action on Bankruptcy Cases When a person owing a claim files for bankruptcy, the PCD may petition the bankruptcy court on behalf of FNS. If ESA receives written notification that an individual has filed for bankruptcy, all collection actions must stop, including automated benefit recoupment. ESA staff that become aware of a bankruptcy petition must promptly notify the PCD, which will manage communications and coordinate any necessary actions with the Bankruptcy Court. 23.7 Delinquent Recipient Claims A recipient claim must be considered delinquent if it meets one of the following conditions:  The claim has not been paid by the due date on the initial demand letter, and a satisfactory repayment agreement has not been made. In addition, a scheduled payment has not been made by the agreed-upon due date or when there has been no collection for the past 30 days. The claim will remain delinquent until payment is received in full, a satisfactory repayment agreement is negotiated or allotment reduction is invoked.  A repayment agreement has been made, and a scheduled payment has not been made by the due date. The date of the delinquency of a claim in this category is the due date of the missed payment. The claim will remain delinquent until payment is received in full, allotment reduction is invoked or ESA determines to resume or renegotiate the repayment agreement. A claim will not be considered delinquent if another claim for the same household is currently being paid either through a repayment agreement or allotment reduction and ESA expects to begin collection on the claim once the prior claim is settled. A claim is not subject to the requirement for delinquent debts if ESA is unable to determine delinquency status because collection is coordinated through the court system. Recipient claims that are 90 days delinquent may be referred to PCD. The DCAS system automatically transfers these claims to add to the monthly delinquency determination. Once a delinquent claim has been transferred to PCD, the primary responsibility for collection action belongs to PCD. PCD will initiate collection on delinquent SNAP recipient claims by the federal Treasury Offset Program for claims at least 120 days delinquent. Legal Authority Underpayments (federal): SNAP: 7 USC § 2020(b) and (e)(11), 7 CFR § 273.17 Overpayments (federal): SNAP: 7 USC § 2022, 7 CFR § 273.18

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