Government agencies can file Revenue Recapture claims to collect eligible debts owed by individuals.
What debts are eligible?
Your agency can only use Revenue Recapture for debts that are $25 or more that a person owes under a contract, statute, court order, or other legal obligation. Examples of eligible debts include:
Criminal fines or restitution (court-ordered payment to victims)
Copayments for the appointment of a public defender in district court
Claims for unpaid rent if the apartment is owned by a city or government agency
Overpayment of public assistance (See Public Assistance)
Medical services, unless the debtor's income was below poverty guidelines (See Debts for Medical Services)
What debts are not eligible?
Your agency cannot use Revenue Recapture for debts when any of the following are true:
- The collection attempt would result in the loss of federal funds.
- The legal time limit for collecting the debt has expired (See Statute of Limitations.)
- The debt is covered by a payment agreement that forbids Revenue Recapture.