PAYMENT METHODS

CS 708P Special Circumstances:  Uncollectible Arrears Only Cases

08/20/03 Revised 09/07/23 Training Completed 09/21/23 Last Reviewed 09/03/25

45 CFR 303.11; R527-038

 

NOTE:  This policy is not to be used for incoming intergovernmental case closures and can only be used when the case will qualify for UNF closure after writing off the debts.

 

 

Statutory Authority

 

45 CFR 303.11 Case closure criteria.

“(a) The IV-D agency shall establish a system for case closure.

(b) The IV-D agency may elect to close a case if the case meets at least one of the following criteria and supporting documentation for the case closure decision is maintained in the case record:

(1) There is no longer a current support order and arrearages are under $500 or unenforceable under State law;”

 

R527-38.  Unenforceable Cases.

R527-38-1.  Authority and Purpose.

“(1)  The Department of Health and Human Services is authorized to create rules necessary for social services pursuant to Section 26B-1-202. The Office of Recovery Services (ORS) is authorized to adopt, amend, and enforce rules pursuant to Section 26B-9-108.

(2)  The purpose of this rule is to establish the criteria that a support case must satisfy to be categorized as unenforceable pursuant to 45 CFR 303.11.”

 

R527-38-2  Unenforceable Case Criteria.

 “The following criteria must be met for a support case to be categorized as unenforceable:

(1)  The case is currently not a paying case, meaning that payments have not posted to the case during the last 12 months, and payments are not expected to post in the near future;

(2)  ORS has not received any federal offset money within the last two years;

                (3)  ORS has not received any state tax money within the last two years;

(4)  ORS has collected $1,000 or less on the case over the last two years by methods other than federal offset or state tax;

(5)  ORS has not located any financial institution accounts belonging to the non-custodial parent that can be levied or attached;

                (6)  ORS has not located any executable assets belonging to the non-custodial parent; and

(7)  If the matter concerns a Title IV-E case, the children identified as being part of the case have been out of state custody for at least one year or parental rights have been terminated.”

 

Before a case can be reviewed for the uncollectible case criteria, the obligation must be open for at least two years.  For example, if a case was opened on 01/13/2014, the obligation was effective and added to ORSIS on 08/01/2014, the case would not potentially meet the uncollectible criteria until 08/01/2016.  An arrears only case may be considered uncollectible if ALL of the criteria listed above are met.  However, the steps you take on the case, and whether you can close the case, will be different depending upon the specific type of case and other factors described later in this section.

 

 

CSS Uncollectible Case Report

 

Based on the criteria listed in subsection Statutory Authority above, a report is available at the end of each month to help identify uncollectible arrears only cases that may qualify for closure.  This report should not be used as the sole reason for closing a case as uncollectible.  It is possible that some of the cases that appear on the report will not qualify for closure, such as a multiple cases (see below); likewise, the report may not identify all cases that meet the qualifying criteria.  Research the cases on the report to determine if all of the criteria are met and if it is appropriate to close the case.

 

 

Multiple Cases

 

If the NCP has multiple cases and not all of the cases meet the uncollectible criteria found in subsection Statutory Authority above (e.g., payments are being received on one or more of the cases), you may still apply the criteria to the case(s) that qualifies, if it appears unlikely that the NCP will ever be able to pay the debts owed in the qualified case(s).

 

1.                   If the NCP is making regular payments on a case multiple that will be paid off within five years, because the payments will distribute to the qualified case at that time, do not close the case. 

 

EXAMPLE:  The NCP is making current support payments on a case that is current support only.  No arrears are being paid on the qualified case.  In three years the child on the current support only case will emancipate and the payments can then distribute to the arrears only case.

 

2.                   Consider the size of the debts and other factors.

 

EXAMPLE 1:  The NCP has three cases, two Non-IV-A cases and one IV-A arrears only case.  The NCP owes more than $20,000 to the two families on the Non-IV-A cases.  Currently, the NCP is not able to meet the total current support on the Non-IV-A cases.  Therefore, it is unlikely that payments will ever distribute to the IV-A arrears only case. 

 

EXAMPLE 2:  The NCP has three cases, two Non-IV-A cases and one CIC IV-E arrears only case.  The NCP owes more than $20,000.00 on the Non-IV-A arrears only case and the other Non-IV-A case has a current support debt of $310.00 per month.  Payments must distribute to the current support debt on the Non-IV-A case first, then they can be applied to the two Non-IV-A arrears only cases.  However, the NCP is not able to meet the full current support amount each month.  Therefore, it is unlikely that payments will ever distribute to the CIC IV-E arrears only case.  

 

 

Procedures – IV-A Arrears Only Case

 

If a IV-A arrears only case meets all of the criteria listed in subsection Statutory Authority above, refer to the procedures listed below.

 

1.                   Complete the Uncollectible Case Checklist and Reviewing Tool.  Document your research in the case narratives. 

 

2.                   Conduct a review to unassign arrears, if appropriate.

 

3.                   Manually withdraw the electronic court lien, if appropriate.  This will stop a “satisfaction” of the debt. 

 

4.                   Write off the state’s debt by adjusting the IV-A debt(s) to zero.  Once the debt is written off, it is permanently written off – do not reinstate it. 

 

5.                   Document all actions taken in the case narratives.

 

6.                   Continue closing the case using the unenforceable case closure code.

 

 

Procedures – Non-IV-A Arrears Only Case

 

If a Non-IV-A arrears-only case meets all of the criteria listed, refer to the procedures below.

 

1.                   Complete the Uncollectible Case Checklist and Reviewing Tool.  Document your research in the case narratives. 

 

2.                   Make sure the CP is the applicant and send the Applicant/Recipient Information Request letter.

 

3.                   If the CP/applicant does not respond to the request letter within ten days by calling, faxing, e-mailing, coming into the office, or returning the bottom portion of the letter to either provide new information about the NCP’s location and/or income or assets, OR to request that the case remain open, you may conclude that s/he does not want the case to stay open.  Proceed with the steps listed below:

a.                   Determine if the case meets the unenforceable closure criteria.  If so, send the 60-day Closure Notice letter to the CP; and,

b.                   Document your actions in the case narratives.

 

4.                   If the CP/applicant responds and provides new information, follow up on the information to the extent possible and take the next appropriate action.

 

5.                   If the CP/applicant responds to the request letter in writing, or by calling, faxing, or e-mailing and is unable to provide any new information, but s/he requests that the case remain open, do NOT close the case until/unless the case meets one of the federal closure reasons.

 

 

Procedures – Mixed IV-A Arrears Only and Non-IV-A Arrears

 

If you have a case with IV-A and Non-IV-A arrears-only, follow the steps in subsection Procedures – Non-IV-A Arrears Only Case.  If you are able to end the Non-IV-A arrears debts, follow the steps in subsection Procedures – IV-A Arrears Only Case to determine if the IV-A arrears debts can be “written off”.

 

NOTE:  If you intend to close the case unenforceable and the Non-IV-A arrears debts were ended under this section, send the closure letter to the CP. 

 

 

Procedures – IV-E and Non-IV-E Arrears Only Case

 

If a IV-E or Non-IV-E arrears only case meets all of the criteria listed in subsection Statutory Authority above, refer to the procedures below.

 

1.                   Complete the Uncollectible Case Checklist and Reviewing Tool.  Document your research in the case narratives. 

 

2.                   IV-E Debts Only – Manually withdraw the electronic court lien, if appropriate.  This will stop a “satisfaction” of the debt. 

 

3.                   Adjust the debts.

a.             IV-E Debts – Write off the state’s debt by adjusting the IV-E debt(s) to zero.  Once a debt is written off, it is permanently written off.  Do not reinstate it.

b.             Non-IV-E Debts – End the Non-IV-E arrears debts using the Administrative Closure adjustment reason.

 

4.                   Document your actions in the case narratives.

 

5.                   Continue closing the case using the unenforceable case closure code.

 

NOTE:  If you have a case with IV-E and Non-IV-E debts, complete the procedures for Non-IV-E debts first and then IV-E debts.

 

 

Payment Received After an Uncollectible Obligation is “Written Off”

 

Once a IV-A or IV-E arrears debt/obligation is written off based on the uncollectible criteria found in this section, it is permanently written off.  Do not reinstate the debt/obligation.  If a payment is received after the debt/obligation and/or case is closed, the Senior Agent is responsible to refund the payment accordingly, and document in the case narratives the reason why the payment was refunded.