Page 125

124

PY26 WHEAP Manual

Revised: August 2025 If the recipient chooses to pay in monthly installments, the local agency must send the payments to the Division as they are received. The local agency is responsible for ensuring that the Division receives the full overpayment within one year from the date the overpayment was discovered. However, if the recipient requires a repayment plan beyond one year, Division approval is required and full payment is expected to be made as soon as possible.

8.10 Bankruptcy If an agency receives a stay order from a court stating that an applicant has filed bankruptcy and listed the agency as a creditor, suspend recoupment activity pending the outcome of the bankruptcy petition. Immediately file proof of claim with the court.

When the bankruptcy process is complete, the court will notify the local agency of the outcome. Consult your agency's counsel or district attorney for instructions on resuming recoupment activity.

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Page 125

Official source

124

PY26 WHEAP Manual

Revised: August 2025 If the recipient chooses to pay in monthly installments, the local agency must send the payments to the Division as they are received. The local agency is responsible for ensuring that the Division receives the full overpayment within one year from the date the overpayment was discovered. However, if the recipient requires a repayment plan beyond one year, Division approval is required and full payment is expected to be made as soon as possible.

8.10 Bankruptcy If an agency receives a stay order from a court stating that an applicant has filed bankruptcy and listed the agency as a creditor, suspend recoupment activity pending the outcome of the bankruptcy petition. Immediately file proof of claim with the court.

When the bankruptcy process is complete, the court will notify the local agency of the outcome. Consult your agency's counsel or district attorney for instructions on resuming recoupment activity.