WAG 23-05-04: Effect of Bankruptcy Petitions

PM 23-05-04.

When the FCRC learns that a client with an outstanding overpayment has filed bankruptcy:

1. (FCRC) Send a memo and copies of any documentation of the bankruptcy to BOC immediately. Send the information to:
   • Collections Unit - Metro Chicago, or
   • Assistance Recovery Section - downstate.

     NOTE: If BOC learns that a client has filed for bankruptcy, they will notify the Family Community Resource Center.

   • Include in the memo:
   • case name,
   • case number,
   • Social Security Number, and
   • all affected account and claim numbers.
2. (FCRC) For AABD or GA, stop recoupment immediately.

When a bankruptcy order is finalized:

1. Send a copy of the final order to BOC.
   1. Include Form 2404C asking that the affected claims be adjusted or dropped as specified in the order.