Court Ordered Claim Repayment 430-05-80-45

(Revised 01/01/04 ML2893)

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A worker must recoup the portion of a claim not included in a court order as long as the order does not specifically void it. The worker must also ensure that payments received by the Clerk of Court are sent to the Finance Division of the Department of Human Services along with the case name and case number.

 

When an individual has been found guilty of fraud in court, the worker must:

  1. Send Notice F822 – IPV/Court Conviction/Deferred Adjudication (FR error) to the household. This notice is a combination overissuance/demand for payment notice.

The worker will receive an alert 10 days from the date Notice F822 is sent as a reminder that the demand for payment is due.

  1. Change the error cause from CL to FR and the payment plan from 10% to 20% or $20 (if the $20 is greater than 20%) if the household does not respond and is currently participating in the program. Allotment reduction is automatic.

Examples:

  1. An open food stamp case has a $500 claim and is court ordered to repay $300 to the Clerk of Court. The court order does not state that the remaining amount of the claim is void. The worker must recoup the remaining $200 at 20% each month in addition to the monthly payments the household is required to pay the Clerk of Court. (If the individual fails to make payments to the Clerk of Court, the worker must continue to recoup at 20% until the claim is paid in full.) The total amount of the collection MUST NOT exceed the claim amount. The worker must keep in contact with the Clerk of Court.
  2. A closed food stamp case has a $500 claim and is court ordered to repay $300. The court order does not state the remaining amount of the claim is void. The worker must send F009 - Non/Insufficient Payment of Claim. If no response is received from the individual, the claim will remain in TECS for TOP (Treasury Offset Program).
  3. A food stamp case is reopened, has a $500 claim, and is court ordered to repay $300. The court order does not state the remaining amount of the claim is void. The worker must recoup the remaining $200 at 20% each month. (If the individual fails to make payment to the Clerk of Court, the worker must continue to recoup at 20% until the claim is paid in full.) The total amount of the collection MUST NOT exceed the claim amount. The worker must keep in contact with the Clerk of Court.