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BAM 725 14 of 18 COLLECTION ACTIONS BPB 2026-014 5-1-2026

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

Used For Collection Action • OIs pending with OIG • Suspends all collections actions. • OIs pending with AH • Suspends all collection actions. • Bankruptcy

• Death

• Suspends all collection actions. • Suspends all collection actions. • Suspended • Suspends all collection actions. Bankruptcy When a bankruptcy notice for a person with an outstanding overissuance balance is received it must be forwarded to the local office's designated fraud coordinator, who will process and track all bankruptcy notices. The coordinator scans the notice to the RSSECT mailbox or sends the document to WDU, WDU will notify MDHHS Legal Affairs and the RS so proper actions will be taken. MDHHS Legal Affairs reviews and makes recommendations to the Attorney General’s office regarding whether to take legal action to block discharge of the debt. The reconciliation unit suspends debts and retrieves debt if they are in debt collection status. The RS verifies that debts are suspended. CDC Only MiLEAP reviews and makes recommendations to the Attorney General's office regarding whether to take legal action to block discharge of the debt. MiLEAP directs the reconciliation unit to suspend debts and retrieves debt if they are in debt collection status. The RS verifies that debts are suspended. If the client’s bankruptcy petition is granted, the court issues a dis- charge of debt. If MDHHS or MiLEAP is listed as a discharged debt on the court document, determine which overissuances were discharged. Update Benefit Recovery System by: 1. The central office document control unit manually writes off overissuances that were discharged by the court: 2. Reinstating recoupment for any intentional program violation overissuances that were not discharged by the court.