a) If collection action has been initiated and at least one demand letter has been sent, the Department may suspend a claim if:
- 1) The household cannot be located, or
- 2) The cost of further collection action is likely to exceed the amount that can be recovered, or
- 3) The household has initiated bankruptcy proceedings, or
- 4) The claim is determined to be invalid, or
- 5) The claim balance is $25 or less and has been delinquent for 90 days or more, unless the total of all claims is more than $25, or
- 6) All adult household members are deceased.
- b) A claim may be terminated as uncollectable if it has been suspended for three years. Suspended claims shall be used by the Department to offset any lost benefits to which a household is entitled. Lost benefits shall be offset until the entire claim is paid off. (See 89 Ill. Adm. Code 121.95 regarding the Restoration of Lost Benefits.)
- c) The amount of the claim may be adjusted if upon review the Department believes that the household is not able to repay the claim.
- d) A terminated and written off claim will be reinstated if a new collection method or a specific event (such as winning the lottery) substantially increases the likelihood of further collections.
(Source: Amended at 26 Ill. Reg. 400, effective January 1, 2002)