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Child Care Assistance Program (CCAP) Policy Manual

Child Care Assistance Program (CCAP) Policy Manual


14.9.21 Uncollectible Debts

ISSUE DATE: 02/2022

Fraud claims cannot be determined as uncollectible debt.

A claim is considered uncollectible when any of the following occur:

  • · All reasonable collection efforts have been exhausted.
  • · The cost of further collection action will exceed the amount recoverable.
  • · The debt is legally without merit or cannot be substantiated by evidence.
  • · The debtor cannot be located.
  • · The available assets or income, current or anticipated, that may be available for payment of the debt are insufficient.
  • · The debt has been discharged in bankruptcy.
  • · It is not in the public interest to pursue collection of the debt.

    • Determining that the debt is uncollectible does not cancel the legal obligation of the debtor to pay the debt. The debt will be reduced to $0 within MEC2. If collection occurs in the future, the debt will need to be reinstated.

    Legal authority

    Minnesota Statutes 16D.09

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