[Code of Federal Regulations]
[Title 41, Volume 3]
[Revised as of July 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 41CFR105-55.027]

[Page 415-416]
 
           TITLE 41--PUBLIC CONTRACTS AND PROPERTY MANAGEMENT
 
              CHAPTER 105--GENERAL SERVICES ADMINISTRATION
 
PART 105-55_COLLECTION OF CLAIMS OWED THE UNITED STATES--Table of Contents
 
Sec. 105-55.027  Suspension of collection activity.

    (a) The General Services Administration (GSA) may suspend collection 
activity on a debt when--
    (1) The Agency cannot locate the debtor;
    (2) The debtor's financial condition is expected to improve; or
    (3) The debtor has requested a waiver or review of the debt.
    (b) Based on the current financial condition of the debtor, GSA may 
suspend collection activity on a debt when the debtor's future prospects 
justify retention of the debt for periodic review and collection 
activity and--
    (1) The applicable statute of limitations has not expired; or
    (2) Future collection can be effected by administrative offset, 
notwithstanding the expiration of the applicable statute of limitations 
for litigation of claims, with due regard to the 10-year limitation for 
administrative offset prescribed by 31 U.S.C. 3716(e)(1); or
    (3) The debtor agrees to pay interest on the amount of the debt on 
which collection will be suspended, and such suspension is likely to 
enhance the debtor's ability to pay the full amount of the principal of 
the debt with interest at a later date.
    (c)(1) GSA will suspend collection activity during the time required 
for consideration of the debtor's request for waiver or administrative 
review of the debt if the statute under which the request is sought 
prohibits the Agency from collecting the debt during that time.
    (2) If the statute under which the request is sought does not 
prohibit collection activity pending consideration of the request, GSA 
will use discretion, on a case-by-case basis, to suspend collection. 
Further, GSA ordinarily will suspend collection action upon a request 
for waiver or review if the Agency is prohibited by statute or 
regulation from issuing a refund of amounts collected prior to Agency 
consideration of the debtor's request. However, GSA will not suspend 
collection when the Agency determines the request for waiver or review 
is frivolous or was made primarily to delay collection.
    (d) When GSA learns a bankruptcy petition has been filed with 
respect to

[[Page 416]]

a debtor, in most cases the collection activity on a debt will be 
suspended, pursuant to the provisions of 11 U.S.C. 362, 1201, and 1301, 
unless the Agency can clearly establish the automatic stay has been 
lifted or is no longer in effect. GSA will, if legally permitted, take 
the necessary legal steps to ensure no funds or money are paid by the 
Agency to the debtor until relief from the automatic stay is obtained.