Debts RTA by Treasury due to Bankruptcy (RB)

70.17.1 - Debts RTA by Treasury due to Bankruptcy (RB) (Rev. 11787; Issued:01-19-23; Effective: 04-21-23; Implementation:04-21-23) Debts in bankruptcy status are ineligible for cross-servicing. The contractors are responsible for obtaining bankruptcy documentation to support the bankruptcy status code listed on the RTA report. Once the contractors obtain the documentation, they shall update HIGLAS or their internal records to reflect the appropriate code for bankruptcy. The contractors shall follow established procedures regarding debts in bankruptcy status. The contractors shall properly report the status of these debts in their quarterly financial reports to CMS CO. (See Pub. 100-06, chapter 3, section 140.) The Treasury no longer routinely sends bankruptcy documents to creditor agencies. Therefore, contractors shall follow established procedures, including contacting the CMS Regional Office (RO), to obtain bankruptcy documentation. It is the contractor’s responsibility to obtain the bankruptcy documentation. If the contractors cannot obtain bankruptcy documentation through established procedures, including asking the RO for assistance, the contractors may contact Treasury to obtain documentation for RTA debts in bankruptcy. If the contractors are unable to obtain bankruptcy documentation through established procedures or through the assistance of the RO, they shall request bankruptcy documentation from Treasury via email to CrossServicing.Questions@fms.treas.gov. The subject line of the email request shall be entitled, “Request for Bankruptcy Information”. If the contractors do not receive a confirmation from Treasury within 2 business days of the request, the contractor shall re-send the email or make another request to Treasury via fax number 205-912-6353. The contractors shall include the following information; the Cross-Servicing Next Generation (CSNG) number, debtor name and the contractor’s contact information on each request via email or fax. If the CMS Regional Office of General Counsel (OGC) advises the contractor that debts are not discharged in bankruptcy and are still eligible for referral, the contractor shall submit a new referral to Treasury.