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VIRGINIA DEPARTMENT OF SOCIAL SERVICES RECIPIENT CLAIMS

10/24 VOLUME V, PART XVII, PAGE 11

• The claim has not been paid by the due date on the initial demand letter or repayment agreement and a satisfactory payment arrangement has not been made; or • A payment arrangement has been established and a scheduled payment, either no payment or one in a lesser amount, has not been made by the due date on the repayment agreement.

The claim will remain delinquent until payment is received in full, a satisfactory payment agreement is negotiated or allotment reduction is invoked.

A claim will not be considered delinquent if:

• Another claim for the same household is currently being paid, either through an installment agreement or allotment reduction, and the local department of social services expects to begin collection on the claim once the prior claim(s) is paid in full; or • The local department of social services is unable to determine delinquency status because collection is coordinated through the court or probation office; or • A fair hearing has been requested and a hearing decision has not been rendered.

J. TERMINATING COLLECTION (7 CFR 273.18(e)(8))

A claim must be terminated if the claim meets any of the following criteria and the action is supported by documentation:

• All adult members of the household are dead and there are no plans by the local department of social services to pursue collection from the estate; • A claim has an outstanding balance of $25 or less and no payment has been made for 90 days or more; • A claim is delinquent for three years or longer; no payments have been received in three years and the claim has not been certified to TOP; • The household cannot be located, unless the claim has been referred to TOP. If the claim has been referred to TOP, the local department of social services may keep the claim active until the claim meets criteria #3, listed above; • A claim has been discharged through bankruptcy. The discharge of the debt removes the liability from all liable persons, not just the individual who filed bankruptcy, unless contrary to the court order; • A claim has been transferred to another state for collection; or. • It is no longer cost effective to pursue the claim as the balance is less than $1 for a participating household or less than $5 for a household that is not currently participating.

A claim must also be terminated if there is insufficient information or documentation to substantiate that the claim was properly established or to determine the correctness of the balance due. Properly established means that an initial demand letter was mailed or a court ordered repayment.

The local department of social services must document the reason for termination.

Note that a terminated claim may be reinstated if a new collection method or a specific event (such as winnings the lottery) increases the likelihood of further collections.

TRANSMITTAL #35