Page 280

VIRGINIA DEPARTMENT OF SOCIAL SERVICES RECIPIENT CLAIMS

10/24 VOLUME V, PART XVII, PAGE 6

If a non-participating household agrees to repay the amount of the overpayment but does not make a payment by the due date specified on the Repayment Agreement, the BPS should send a Request for Repayment of Extra SNAP Benefits-Payment Overdue letter at 30-day intervals until the household begins to pay again, or until the criteria for terminating collection action, as specified in Part XVII.K have been met. If the household makes the overdue payments and wishes to continue payments based on the previous schedule, these payments will be considered voluntary unless a new Repayment Agreement is signed. If the household renegotiates a new Repayment Agreement with the local department of social services and makes a payment before the end of the 60-day Notice period, any further involuntary collection will be prevented if the terms of the agreement are kept. Only the Treasury Offset Program (TOP) Coordinator may negotiate a new repayment agreement once a claim has been certified to TOP.

If the household requests renegotiation and the BPS concurs with the request, the household may negotiate a new payment schedule. Both the BPS and the household have the option to initiate renegotiation of the payment schedule if they believe that the household's economic circumstances have changed enough to warrant such action.

If a participating household agrees to repay the claim by making installment payments but does not submit a payment by the specified due date, the BPS must invoke benefit reduction.

2. Compromising Claims

The BPS may determine that a household's economic circumstances dictate that a claim will not be paid in three years. The BPS may compromise the claim amount or a portion of the claim by reducing the amount owed to allow the household to pay the claim within three years. Note that the monthly payment amount determined through the Repayment Agreement may result in a claim being repaid in a period that is longer than three years. A claimant may request a compromise at any time after a claim is established but only one compromise will be allowed per claim.

A claim may not be compromised if: • the claim is the result of an intentional program violation (IPV); • the claim has been certified to the Treasury Offset Program (TOP); or • the gross income for the SNAP claim household exceeds 200% of the Federal Poverty Level at the time the compromise is requested.

Compromise Process The local department of social services should use the Compromising Claims worksheet (032-03-0572-00-eng) to project the repayment amount expected in three years. The entire balance may be compromised if the household’s actual monthly shelter expenses and actual monthly medical expenses exceed the household’s monthly gross income and there are no changes expected in the household’s economic circumstances.

The evaluation process factors in household income, expenses, and liquid resources. The process also requires the agency to:

TRANSMITTAL #35