REMINDER: A payee is not required to repay past debt but should consider the consequences
of nonpayment.
Example 1. Approve Full Repayment of Past Debt
You have established the validity of the debt and obtained information in accordance
with GN 00602.030C. The amount still owed to the creditor is $1,400. The payee just received $6,400 in
past-due benefits for the beneficiary, and the ongoing monthly benefit amount is $800.
The beneficiary is in a rehabilitation center where the monthly cost of care is $700.
The payee has established a release fund of $2,000 from the past-due benefit, and
is using $50 monthly to provide personal comfort items for the beneficiary.
Ongoing monthly benefits ($800) exceed monthly needs ($700 + $50), and accrued benefits
($6,400), less the amount of the release fund ($2,000), exceed the amount of the debt
($1,400). You may approve repayment of the entire $1,400 debt.
Example 2. Approve Partial Repayment of Past Debt
You have established the validity of the debt and obtained information in accordance
with GN 00602.030C. The amount still owed to the creditor is $5,600. The payee just received $6,400 in
past-due benefits for the beneficiary, and the ongoing monthly benefit amount is $800.
The beneficiary is in a rehabilitation center where the monthly cost of care is $700.
The payee has established a release fund of $2,000 and is using $50 monthly to provide
personal comfort items for the beneficiary.
Ongoing monthly benefits ($800) exceed needs ($700 + $50) but accrued benefits ($6,400)
less the amount of the release fund ($2,000, are insufficient to repay the full amount
of the debt. You may approve partial repayment, up to $4,400 ($6,400 accrued funds,
less $2,000 release fund).
Example 3. Disapprove Repayment of Past Debt
You have established the validity of the debt and obtained information in accordance
with GN 00602.030C. The amount still owed to the creditor is $5,600. The payee just received $6,400 in
past-due benefits for the beneficiary, and the ongoing monthly benefit is $800.
The beneficiary is in a rehabilitation center where the monthly cost of care is $1,300.
The payee has established a release fund of $2,000 and is using $50 monthly to provide
personal comfort items for the beneficiary.
Ongoing monthly costs ($1,350) exceed monthly benefits ($800), so the payee will need
to use past-due benefits to meet the beneficiary's current and reasonably foreseeable
needs. Deny approval of request to repay past debt.