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MS 1150 (2) 4. Verify bankruptcy: If the individual filed for bankruptcy and the automatic bankruptcy stay is in effect, the individual is not subject to offset or other collection actions. Intentional Program Violation (IPV) SNAP claims established by court order, waiver, or Administrative Disqualification Hearing (ADH), are not affected by the bankruptcy petition. CMS receives notification of bankruptcy from the federal court, but will accept official documentation provided by the individual or legal representative. B. Criteria for sending a delinquent claim to TOP: 1. A SNAP claim; 2. A current claim balance of greater than $25; 3. Not currently in benefit reduction status; 4. Not in compliance with a KCD 1.11 that was accepted by the agency or failure to return KCD 1.11 timely; 5. Not included under an automatic stay due to bankruptcy; and 6. Not currently under a court’s restitution order or a restitution order was issued but the ordered amount to be paid is not being met by the individual.] C. Collection process before going to TOP: 1. [A claim is considered delinquent when a KCD 1.11 has not been entered into and a payment has not been received within 30 days of the initial demand letter or is one day late on a previously arranged repayment plan. 2. At 90 days after the debt becomes delinquent, the KCD-1.60, 60 Day Notice, is sent to the individual. This notice includes information on how the individual can avoid having the debt submitted to TOP and the type of federal payments that may be offset to collect on the claim. A KCD-1.60 is sent to all adult liable members for the claim period. 3. If after 60 days from the date of the KCD-1.60 the client has not responded, the debt is submitted to TOP. Note: A total of 120 days must elapse from the delinquent date before a claim can be submitted to TOP.] D. Eligible Federal Payments: TOP will reduce or withhold payments in the amount of the debt owed by the individual from the following federal sources: 1. Income tax refunds, including Earned Income Tax Credit. 2. Up to 15 percent of a federal salary payment, including military. 3. Up to 25 percent of a Federal Retirement payment.