Debt Located at the Department of Treasury

140.8.2 - Debt Located at the Department of Treasury (Rev. 13825; Issued: 06-11-26; Effective: 07-13-26; Implementation: 07-13-26) If a debt is located at the Department of Treasury (Treasury) for cross-servicing and the provider files for bankruptcy, the servicing Contractor must immediately notify Treasury. The Contractor shall recall the debt from Treasury as debts in bankruptcy status are ineligible for cross servicing and offset. If the Treasury receives the initial notification of a bankruptcy filing while servicing a debt, they will notify the Contractor, who, in turn, will notify the servicing CMS Office of the bankruptcy. NOTE: Debts for unfiled cost reports are not reported on the TROR, therefore, if these debts become "bankrupt," the Contractor shall record no transaction on these forms.