049-1 Wyo. Code R. § 1-13

Current through April 27, 2019

Section 1-13 - Bankruptcy

(a) FO-DFS and DFS-ORP shall stop all recovery actions upon receiving either a Request of Discharge form for a Chapter 7 bankruptcy or a Confirmation Hearing form for a Chapter 13 bankruptcy.

(b) FO-DFS shall send the original bankruptcy forms and the case file (including a copy of the bankruptcy form) to DFS-ORP immediately upon receipt of the forms.

(c) DFS-ORP shall review the overpayment file and determine:

(i) whether the case is cost effective to pursue; or

(ii) the evidence is sufficient to obtain an exception to discharge based on fraud or misrepresentation; and

(iii) attend the scheduled meetings and allow legal representation of the Agency.

(d) Debts for property or money obtained as a result of fraud or by the use of fraudulent statements and debts not listed on the bankruptcy petition shall not be dischargeable debts in bankruptcy.

(e) DFS-ORP shall file an Exception to the Discharge in Chapter 7 bankruptcies or object to the reorganization plan in Chapter 13 bankruptcies when:

(i) the unpaid balance of the overpayments total more than $500.00; and

(ii) the case file contains clear and convincing evidence of a false representation or willful misrepresentation by the assistance unit/debtor and such representation or misrepresentation was made with the intent to deceive the agency/creditor and the agency/creditor's reliance upon the information was reasonable causing the agency/creditor to sustain a loss as a result of the false and willful misrepresentation.

(f) FO-DFS shall assure all overpayments are terminated upon receiving a copy of the Discharge of Debtor(s) form from the bankruptcy court and FO-DFS shall send a copy of the discharge to DFS-ORP immediately.

(g) FO-DFS shall reinstate the previously terminated overpayment(s) upon receiving a copy of the Judgment and Order of Nondischargeability and proceed with collection efforts.

049-1 Wyo. Code R. § 1-13