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.