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Minnesota Department of Human Services Child Care Assistance Program (CCAP) Policy Manual
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14.9.21 Claim Termination and Uncollectible Debts

ISSUE DATE: 04/2009

TERMINATION A claim may be terminated and the claim balance adjusted to $0 when there is no realistic prospect for future recovery. This practice differs from a write-off which is an accounting mechanism to remove a claim as an accounts receivable asset even though the claim is retained against the possibility of future recovery. All terminated claims are automatically written off, but claims that are written off are not necessarily terminated. Terminate claims when:

The only responsible debtor for a claim has died and no future recovery actions are available. OR

The only responsible debtor for a claim has had that debt discharged by federal bankruptcy court. OR

When a claim is the sole responsibility of a debtor who resides in a Long Term Care Facility, there is no prognosis for a return to residential living in the community and there is no estate to repay the claim or there are existing commitments to repay higher priority obligations. OR

When initial notification on a claim occurred at least 10 years previous, there has been no recovery on any of the claims in the preceding 6 years, criminal restitution is no longer required by district court, there is no docketed judgment and the debt is not certified for Revenue Recapture.


Uncollectible debts are defined as debts older than six years with no collection activity. Uncollectible debts are not removed from MEC2 (the claims are not adjusted to zero and the balance due remains).


Minnesota Statutes 16D.09

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