If, after the government files the complaint, the debtor contacts the United States Attorneys’ office, acknowledges the debt, and requests to enter into an installment payment plan, then the debtor shall be required to complete and sign a Form OBD-500, Financial Statement, or similar statement of financial disclosure. If the financial disclosure information reveals the debtor’s ability to pay the debt in full, then the United States Attorney’s office should require the debt to be paid in full within 180 days. It is strongly recommended that the debtor execute a consent judgment providing for entry of judgment by the court if full payment is not received within 180 days. A claim shall remain in prejudgment status only in those instances where the debtor agrees to pay the debt in full within 180 days. In the absence of a consent judgment, if full payment is not received within the 180 day period, the claim shall be pursued, judgment shall be obtained and enforced collection efforts initiated.

If an installment payment plan is justified based upon a review of the Financial Statement and other credit and/or financial asset information, the debtor shall be required to execute a consent judgment and that judgment shall be immediately entered with the court. The consent judgment shall be for an amount equal to the principal amount of the debt plus all prejudgment interest, administrative costs and penalties payable to the date of judgment, and court costs. The client agency shall be promptly notified of the entry of the judgment.

Once a determination has been made by the United States Attorney to pursue a claim, the government’s interests should be promptly secured. Given that the debtor has been provided ample opportunity to arrange for payment of the debt prior to referral, it typically is counterproductive for the United States Attorney to provide further opportunity for payment without first securing the government’s interests. Accordingly, the use of promissory notes containing an agreement for judgment are disfavored.

The United States Attorney shall personally approve and set forth in writing for the Financial Litigation/Asset Recovery Unit any exceptions to this policy which are required for the handling of unusual types of situations or claims. Any approved exceptions shall be incorporated into the district’s Financial Litigation Plan.

[added May 2018]