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resources, to the same extent as USDA. Acting as USDA-FNS, the Office of the Attorney General shall have the power and authority to file objections to discharge, proofs-of claims, exceptions to discharge, petitions for revocation of discharge, and any other documents, motions, or objections which USDA-FNS might have filed. Office of Attorney General also has this authority for TANF claims. • When an overpayment claim is listed as a debt in a bankruptcy proceeding, Central Office will receive a notice entitled Order for Meeting of Creditors and Fixing Times for Filing Objections to Discharge and for Filing Complaints to Determine discharge ability of Certain Debts, Combined with Notice Thereof and of Automatic Stay. • Upon receipt of this notice Benefit Recovery should stop collection immediately and send a copy of this order to the Central Office Financial Management Section, 402 West Washington Street, Room E442, Indianapolis, Indiana 46204. Certain acts and proceedings against the debtor are automatically stayed. (11 USC Section 364(a)) Before further collection activity is continued or initiated, FSSA must get an exception to the stay. The criteria for obtaining an exception to the stay are set forth in 11 USC Section 362(b). Under the provisions of this subsection, it is unlikely that an exception to the stay could be sought in good faith and it most likely would not be granted even if sought, unless the claim is IPV. • Benefit Recovery will consult with the Office of Attorney General regarding the filing of an objection to the discharge of the debt or the filing of a complaint to determine discharge ability. 11 USC Section 523 provides for certain exceptions to discharge. Subsection (a)(2)(B) might cover the SNAP claims determined to be IPVs if all criteria set out therein were met. The Order referenced in the above subsection will specify deadlines by which objections and complaints must be filed.

Claims other than IPV/fraud will most likely be dischargeable. For IPV/frauds, contact Office of Attorney General. • Whether to seek an exception to the discharge must be carefully evaluated because 11 USC Section 523(d) provides for a judgment against the creditor for costs and attorney's fees if the court finds the position of the creditor in requesting a determination of discharge ability was not substantially justified. • If the bankruptcy results in discharge of the claim (release of the debt) and all liable individuals are parties to the Bankruptcy, then Benefit Recovery will list this claim as terminated. If there is a liable individual who is not a party to the bankruptcy, do NOT use status 'TB'. Instead, code the individual as terminated. • If the bankruptcy results in a distribution of assets where the DFR is allotted an amount of that distribution, the amount collected shall be credited against the claim overpayment. Claims in 'TB' status can be re-opened if necessary. • If an exception to the discharge is obtained, Benefit Recovery and Financial Management will be informed and shall resume collection. • Bankruptcy does not terminate pending SNAP IPV disqualifications.

Paid-in-Full: • A claim is terminated when a claim is paid in full If other claims exist, allotment/benefit reduction is to be initiated on the next claim(s).