Title 16
7000 Cash Assistance Overpayments and Food Stamp Claims
7005 Terminating and Writing-off Claims - Food Stamps Only
A terminated claim is a claim in which all collection action has ceased.
A written-off claim is no longer considered a receivable subject to continued Federal and State agency reporting requirements.
Claim termination policy is as follows:
A. If the agency finds that the claim is invalid, the agency must discharge the claim and reflect the event as a balance adjustment rather than a termination unless it is appropriate to pursue the overpayment as a different type of claim, like as an IHE rather than an IPV claim.
B. If all household members die, the agency must terminate and write-off the claim unless the agency plans to pursue the claim against the estate.
C. If the claim balance is $25 or less and the claim has been delinquent for 90 days or more, the agency must terminate and write-off the claim unless other claims exist against the household resulting in an aggregate claim total greater than $25.
D. If the agency determines it is not cost effective to pursue the claim any further, the agency must terminate and write-off the claim.
E. If the claim is delinquent for three years or more, the agency must terminate and write-off the claim unless the agency plans to continue to pursue the claim through Treasury’s Offset Program.
F. If the household cannot be located, the agency may terminate and write-off the claim.
G. If a new collection method or a specific event such as winning the lottery substantially increases the likelihood of further collections, the agency may reinstate a terminated and written-off claim.
