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.