If any type of bankruptcy notice is received and there is an active claim on the individual, check the OVCC screen to see if the claim was closed with a reason code of 14 BANKRUPTCY. Forward the bankruptcy notice to the Claims and Restitution Unit immediately if the claim is active or if the claim is closed with a reason other than 14.
DLS monitors the bankruptcy and notifies the court of the agency’s claim against the individual, if appropriate. When the case is settled, DLS updates CARS and coordinates further action necessary with the Claims and Restitution Unit.