1142.075.00  BANKRUPTCY

IM-#142 December 2, 2005

If any type of bankruptcy notice is received and there is an active claim on the individual, check the OVCC screen to see if the claim was closed with a reason code of 14 BANKRUPTCY. Forward the bankruptcy notice to the Claims and Restitution Unit immediately if the claim is active or if the claim is closed with a reason other than 14.

DLS monitors the bankruptcy and notifies the court of the agency's claim against the individual, if appropriate. When the case is settled, DLS updates CARS and coordinates further action necessary with the Claims and Restitution Unit.


IM-#142 December 2, 2005

A Negative Balance Report is generated to identify and monitor possible overpayments of claims. Food Stamp Program and Policy staff reviews the report, and refunds are issued when necessary. For an overpayment to be refunded, the individual must have actually paid the amount in cash, food stamp benefit recoupment, or voluntary repayment of food stamp benefits from EBT. If the negative balance is created by a compromise or offset, the difference is not refunded.

When the EU is issued a refund, the Food Stamp Program and Policy Unit generates a notice. If the EU has an active EBT card, food stamp benefits are issued. If the EU does not have an active EBT card, a check is issued for the refund.


IM-#142 December 2, 2005

There may be instances in which an accused individual meets the terms of a court order or is not prosecuted due to having met the terms of an agreement with the prosecutor but has signed a disqualification consent agreement. If the terms of the court order or the agreement with the prosecutor include a reduction in the amount of the claim, WIU staff records the reason for the reduction on OVNA, and submits a CARS-2 to DBF. The claim balance is adjusted according to the terms of the court order.