.08 Methods of NA Overpayment Collection - Collection on Bankruptcy
When bankruptcy is filed, the Office of Accounts Receivable and Collections (OARC) must cease collection activity during the stay pending the outcome of court proceedings.
OARC acts on behalf of, and as an agent for,
FNS in any bankruptcy proceedings against bankrupt households owing an NA overpayment.
OARC possess the following and participates in any distribution of assets to the same extent as FNS:
●Any rights
●Priorities
●Interests
●Liens or privileges
Acting as an agent for FNS, OARC has the power and authority to file objections to any of the following:
●Objections to discharge
●Proofs of claims
●Exceptions to discharge
●Any other documents, motions, or objections that FNS may have filed