When deciding whether to refer a debt, we must consider these factors:

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  We have exhausted all reasonable efforts to recover (i.e., by adjustment, refund, and compromise settlement);

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  The debt must generally be at least $3,000, because, consistent with stewardship obligations and the efficient administration of the SSI program, the cost of recovery must not exceed the amount recovered, unless the case involves a deceased individual or Federal employee, refer to SI 02220.035B.3.;

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  The statute of limitations for initiating a civil action has not expired, SI 02220.035B.4.;

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  The DOJ must be able to prove its case, refer to GN 02215.150B.3. To do so, DOJ must base its case, in part, on information in the Claims Collection Litigation Report (CCLR). Refer to GN 02215.168;

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  We must be able to locate the liable individual, refer to GN 02215.150B.4.;

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  The individual must have sufficient income or assets to repay part or all of the debt, refer to SI 02220.035B.5; and

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  The estimated costs of pursuing litigation must not be expected to exceed the amount recoverable, except in certain circumstances; refer to SI 02220.035B.6.

  If a debt meets these requirements, refer to the DOJ, through the Assistant Regional Commissioner for Management and Operations Support (ARC MOS), for recovery by civil suit. If the overpayment was the result of fraud, refer for enforced collection through civil suit only after the Office of the Inspector General (OIG) or DOJ has resolved all fraud aspects.

We will not refer a debt to DOJ for civil suit in the following circumstances:

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  Do not refer a death case of more than $3,000 for recovery by civil suit when there is no estate. We do not recover in this circumstance because the cost of pursuing litigation would likely exceed the amount that we would expect to recover;refer to SI 02201.021 and SI 02220.045.

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  If you suspect fraud, do not refer the case for enforced collection through civil suit if the OIG or DOJ has not resolved all fraud aspects.

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  If the overpaid individual filed for bankruptcy, or if a bankruptcy court has discharged the overpayment, do not refer for enforced collection through civil suit. If the bankruptcy case is pending (has not been discharged or dismissed), the automatic stay of collection applies, refer to SI 02220.040 for information about SSI overpayment recovery through bankruptcy.

In order to refer a debt to DOJ,the amount of the debt must be:

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  $200 or more if the liable individual is a Federal employee.

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  $3,000 or more if the liable individual is not a Federal employee; you have exhausted all available means of recovery (i.e., payment adjustment, refund, and compromise settlement) of an overpayment, misused funds, or conserved funds; and fraud is not involved.

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  More than $3,000 in a death case if there is an estate and a formal claim has not been filed. Refer to SI 02201.021 and SI 02220.045.

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  $3,000 or more in cases where the former payee fails to transfer conserved funds to the successor payee or an individual in direct pay.

Federal law limits the time period for the DOJ to file a lawsuit to collect an overpayment debt. If the statute of limitations has expired, the DOJ is barred from initiating litigation to collect a debt. Generally, DOJ must initiate a lawsuit to collect a debt within six years after the date of delinquency.

The time limit may be extended in certain circumstances. If the liable individual makes a partial payment of the debt or acknowledges the debt in writing, the time period restarts for calculating the statute of limitations.

The running of the statute of limitations is suspended during all periods that:

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  The liable individual is outside the United States (U.S.), its territories and possessions, the District of Columbia, or the Commonwealth of Puerto Rico;

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  The liable individual is exempt from legal process because of infancy (i.e., child under age 18), mental incompetence, diplomatic immunity, or for any other reason; or

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  The U.S. is in a state of war declared by Congress.

  Deduct such periods from the actual total elapsed time.

You must make every effort to refer a debt to the DOJ for litigation within one year of the date that the debt last became delinquent to ensure civil action can be initiated timely. In only limited circumstances, the latest time for referral to the DOJ is at least one year before the applicable statute of limitations expires.

A debtor's financial ability to repay all or part of the debt is essential to recovery by enforced collection. Financial evidence must be current and show that the debtor has sufficient income or resources that can be liquidated to permit repayment. To determine if the debtor has income or resources that would allow recovery of all or part of the debt, apply the following rules:

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  Income Only - Refer for enforced collection if income exceeds ordinary and necessary living expenses by more than $250 a month, and the income (after deducting expenses) would permit recovery, within 60 months of at least the $3,000 (except if the case involves a deceased individual or Federal employee); refer to SI 02220.035B.3.

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  Income and Resources - Refer for enforced collection if there is a combination of resources and income that would permit recovery, within 60 months of at least $3,000 (except if the case involves a deceased individual or Federal employee); refer to SI 02220.035B.3.

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  Request documentation of all current income. If the debtor cannot provide complete financial documentation, a record of earnings greater than $10,000 as shown on the DEQY (or SEQY), and paystubs downloaded into Evidence Portal (EP) will permit referral for enforced collection if all other criteria in SI 02220.035B.1. are met.

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  Federal Employee - If attempts to obtain the debtor's financial circumstances are unsuccessful, information that confirms that the debtor is a Federal employee and the name of the employing Federal agency will permit referral for enforced collection if all other criteria are met.

We will find that the cost of litigation is not expected to exceed the amount recoverable if the debt meets the amounts in SI 02220.035B.3., and the individual has the ability to pay; refer to SI 02220.035B.5.

There are certain circumstances where we will still pursue recovery, even where the costs may exceed recovery, if:

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  The debt is $200 or more and the liable individual is a Federal employee; or

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  Fraud is involved.

Do not refer a case to DOJ until you have completed these documentation and notification requirements:

1. a. 

   Document the overpaid individual's ability to refund the overpayment on a Report of Contact; refer to SI 02220.035B.5.

2. b. 

   Determine whether debt can be proven. Refer to GN 02215.168D, item 27 for an example of documenting factors affecting whether the U.S. Attorney will be able to prove the case.

3. c. 

   Issue a notice to the individual using Follow-Up on PSC O/P Notice (DOJ Ref) (2nd Ltr)to inform the overpaid individual that we will refer their overpayment to the DOJ unless they refund the overpayment within 30 days of the date of the notice. The notice is located in the Document Processing System (DPS), under the national and overpayment tabs. Save a copy of this notice in the Online Retrieval System (ORS) for reference if DOJ files a lawsuit

4. d. 

   Prepare and forward to the RO/ARC MOS:

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     A Certificate of Indebtedness (GN 02215.200); and

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     A CCLR, refer to GN 02215.168.

5. e. 

   After the RO/ARC MOS (or DOJ) makes a final disposition decision, complete the Modernized SSI Claims System (MSSICS) Overpayment Decisions (UOPD) screen and select the appropriate code to build an MJ TAC in the OPDD segment. (Refer to SM 01310.200 and SM 01311.200).

   e. The RO will review documentation and provide feedback to the FO.

   f. Send the CCLR as a PDF to CCLR.Submission@usdoj.gov and document that we have sent the CCLR to DOJ.

1. a. 

   If the DOJ (possibly through the U.S. Attorney) requests a listing of the payments involved in the overpayment claim, refer to GN 02215.175A. for additional instructions.

2. b. 

   Make no further requests for refund from the individual; however,

3. c. 

   Accept any refund offered, as long as the individual has not received notice of the civil suit from the U.S. Attorney.

   • •

     Forward the refund to MATPSC, P.O. Box 3430 Philadelphia, PA, 19122. (Include the claim number on the refund check or money order);

   • •

     Inform the RO of the refund by e-mail;

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     The RO will notify the U.S. Attorney of the refund.

     NOTE: Refer to GN 02403.006 and MS 01103.001 for processing remittances received in the FO.

4. d. 

   If the individual offering the refund has received notice of the civil suit from the U.S. Attorney:

   • •

     Accept only a full refund and forward it to MATPSC, P.O. Box 3430 Philadelphia, PA 19122 (Include the claim number on the refund check or money order); and

   • •

     If the individual offers less than a full refund, advise them to make the refund offer to the U.S. Attorney.

5. e. 

   If the individual reestablishes SSI eligibility:

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     Select the Overpayment Decisions (UOPD) screen and delete the appropriate code, then complete the Add/Change/Delete Overpayment Decisions (UODC) screen to add Recovery by Check Adjustment (refer to SM 01311.120, SM 01311.205, MS 00304.007 and MS 00304.008); and

   • •

     Inform the RO of your resumed collection actions. The RO will inform the U.S. Attorney.

   • •

     Terminate adjustment if the U.S. Attorney has recovered the overpayment, or the individual provides proof that they have repaid the overpayment (refer to SM 01311.150).