§ 213.35 - Discharging indebtedness - general.

§ 213.35 Discharging indebtedness - general.

Cross Reference

Link to an amendment published at 86 FR 31146, June 11, 2021.

(a) Before discharging a delinquent debt (also referred to as a close out of the debt),

USAID

the CFO must take all appropriate steps to collect such debt, including (as applicable), the following:

(1) Administrative offset;

(2) Tax-refund offset;

(3) Offset of Federal salary;

(4) Referral to private collection contractors;

(5) Referral to Federal Departments or Agencies that are operating a debt-collection center;

(6) Reporting delinquencies to credit-reporting bureaus;

(7) Garnishing the wages of a delinquent debtor; and

(8) Litigation or foreclosure.

(b) The CFO will make a determination that collection action is no longer warranted and request that litigation counsel release any liens of record that are securing the debt. Discharge of indebtedness is distinct from the termination or suspension of collection activity, and

is governed by

the Internal Revenue Code might apply. When the CFO suspends or terminates collection action on a debt

is suspended or terminated

, the debt remains delinquent, and USAID may pursue further collection action

may be pursued

at a later date in accordance with the standards set forth in this part. When a debt is discharged in full or in part, further collection action is prohibited, and USAID must terminate debt-collection action.

[86 FR 31146, June 11, 2021]