[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: 41CFR105-55.028]

[Page 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. 105-55.028  Termination of collection activity.

    (a) The General Services Administration (GSA) may terminate 
collection activity when--
    (1) The Agency is unable to collect any substantial amount through 
its own efforts or through the efforts of others;
    (2) The Agency is unable to locate the debtor;
    (3) Costs of collection are anticipated to exceed the amount 
recoverable;
    (4) The debt is legally without merit or enforcement of the debt is 
barred by any applicable statute of limitations;
    (5) The debt cannot be substantiated; or
    (6) The debt against the debtor has been discharged in bankruptcy.
    (b) Before terminating collection activity, GSA will pursue all 
appropriate means of collection and determine, based upon the results of 
the collection activity, that the debt is uncollectible. Termination of 
collection activity ceases active collection of the debt. The 
termination of collection activity does not preclude GSA from retaining 
a record of the account for purposes of--
    (1) Selling the debt, if the Secretary determines that such sale is 
in the best interests of the United States;
    (2) Pursuing collection at a subsequent date in the event there is a 
change in the debtor's status or a new collection tool becomes 
available;
    (3) Offsetting against future income or assets not available at the 
time of termination of collection activity; or
    (4) Screening future applicants of loans and loan guaranties, 
licenses, permits, or privileges for prior indebtedness.
    (c) Generally, GSA will terminate collection activity on a debt that 
has been discharged in bankruptcy, regardless of the amount. GSA may 
continue collection activity, however, subject to the provisions of the 
Bankruptcy Code, for any payments provided under a plan of 
reorganization. Offset and recoupment rights may survive the discharge 
of the debtor in bankruptcy and, under some circumstances, claims also 
may survive the discharge. For example, the claims of GSA that it is a 
known creditor of a debtor may survive a discharge if the Agency did not 
receive formal notice of the proceedings.