Section 1.19. Cancellation of indebtedness.

 

(1)   Criteria. The department may cancel indebtedness and forego collection action on a loan provided under s. 45.356 , 1995 Stats., s. 45.80 , 1981 Stats., and s. 45.42 , Stats., if any of the following apply:

(a) The obligated parties on the note are deceased and claims on the estates have failed to produce any payments.

(b) The obligated parties on the note are unlocatable as documented by non-productive skip tracing efforts.

(c) The obligated parties on the note are discharged in bankruptcy and have not reaffirmed the debt.

(d) Interstate restrictions prevent collection..

(e) The obligated parties on the note have established through the submission of adequate documentation that the parties are unable to pay or that continued collection activity would jeopardize collection of other department loans.

(f) The financial benefit to the department of pursuing collection activity does not exceed the cost of pursuing the debt.

(2)   Reevaluation. Except as provided in s. VA 1.17 (1) , the department may reinstate the indebtedness and collection activity based upon a change in the circumstances of an obligated party.

(3)   Administrative review. Any department decision under this section is subject to appeal under s. VA 1.03 .

History: Cr. Register, May, 1999, No. 521 , eff. 6-1-99; correction in (1) (intro.) made under s. 13.93 (2m) (b) 7., Stats., Register, July, 2000, No. 535 .