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BAM 725 10 of 18 COLLECTION ACTIONS BPB 2026-014 5-1-2026

BRIDGES ADMINISTRATIVE MANUAL STATE OF MICHIGAN DEPARTMENT OF HEALTH & HUMAN SERVICES

Probate Claims All Programs If a local office becomes aware of an estate of a deceased person with a remaining overissuance balance, it may refer the claim to the Welfare Debt Unit (WDU). WDU and the AG will determine if pursuit of the estate through probate court claim action is in the best interest of MDHHS or MiLEAP. DELINQUENCY FIP, SDA and FAP Bridges automatically sets delinquency at the claim level and affects all liable individuals attached to the claim. Delinquency is triggered when: • The client fails to sign and return the DHS-4358C, Department and Client Error Information and Repayment Agreement, within 30 days of the claim establishment date. • The client fails to make a $50 monthly cash payment within those same 30 days if the case is closed. • The client on the closed case fails to make full payments each month until the claim is paid off. • Previously active clients who were being administratively recouped and now have closed did not make the $50 monthly payment within 30 days after the DHS-1440A, Notice of Balance Due, was sent and each month thereafter. When a claim becomes delinquent, Bridges refers qualifying cash programs to Michigan Treasury and FAP claims referred to the Treasury Offset Program (TOP). MICHIGAN TREASURY COLLECTIONS FIP, SDA and CDC The welfare debt collection process refers cash overissuances to the State Treasury Accounts Receivable System (STARS) at the Michigan Department of Treasury and collects debts through any of the following:

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Page 10

Official source

BAM 725 10 of 18 COLLECTION ACTIONS BPB 2026-014 5-1-2026

BRIDGES ADMINISTRATIVE MANUAL STATE OF MICHIGAN DEPARTMENT OF HEALTH & HUMAN SERVICES

Probate Claims All Programs If a local office becomes aware of an estate of a deceased person with a remaining overissuance balance, it may refer the claim to the Welfare Debt Unit (WDU). WDU and the AG will determine if pursuit of the estate through probate court claim action is in the best interest of MDHHS or MiLEAP. DELINQUENCY FIP, SDA and FAP Bridges automatically sets delinquency at the claim level and affects all liable individuals attached to the claim. Delinquency is triggered when: • The client fails to sign and return the DHS-4358C, Department and Client Error Information and Repayment Agreement, within 30 days of the claim establishment date. • The client fails to make a $50 monthly cash payment within those same 30 days if the case is closed. • The client on the closed case fails to make full payments each month until the claim is paid off. • Previously active clients who were being administratively recouped and now have closed did not make the $50 monthly payment within 30 days after the DHS-1440A, Notice of Balance Due, was sent and each month thereafter. When a claim becomes delinquent, Bridges refers qualifying cash programs to Michigan Treasury and FAP claims referred to the Treasury Offset Program (TOP). MICHIGAN TREASURY COLLECTIONS FIP, SDA and CDC The welfare debt collection process refers cash overissuances to the State Treasury Accounts Receivable System (STARS) at the Michigan Department of Treasury and collects debts through any of the following: