40-5-255. Charging off child support debts as uncollectible -- sale of support debts. (1) Any support debt due the department from an obligor, which debt the department determines uncollectible, may be transferred from accounts receivable to a suspense account and cease to be accounted as an asset. If a warrant for distraint has been filed and the support debt has subsequently been charged off as uncollectible, the department shall issue a release of lien.
(2) At any time after 10 years from the date of termination of the support obligation or after 10 years from entry of a lump-sum judgment or order for support arrears, whichever is later, the department may charge off as uncollectible any support debt upon which the department finds there is no available, practical, or lawful means by which the support debt may be collected. A proceeding or action under the provisions of this part may not be begun after expiration of the 10-year period to institute collection of a support debt. This part may not be construed to render invalid or nonactionable a warrant for distraint issued by the department prior to the expiration of the 10-year period or an assignment of earnings executed prior to the expiration of the 10-year period.
(3) The department may discount and sell to a private collection agency, credit bureau, or other private entity any interest that the state and the department may have in the unpaid balance of the support debt created by 40-5-221 and 53-4-248 or assigned to the department under 53-2-613.
(a) The sale must be by sealed bid to the highest bidder provided that the highest bid is not less than 10% of the value of the support debt subject to the sale.
(b) The sale must be subject to conditions and terms that the department may set out in a sales contract.
(c) The department shall publish notice of the sale in a newspaper having statewide circulation once a week for 4 successive weeks.
(d) Proceeds must be paid into the state treasury to the credit of the child support enforcement division special revenue fund.
History: En. Sec. 27, Ch. 612, L. 1979; amd. Sec. 49, Ch. 439, L. 1981; amd. Sec. 3, Ch. 561, L. 1985; amd. Sec. 25, Ch. 549, L. 1989; amd. Sec. 19, Ch. 631, L. 1993; amd. Sec. 10, Ch. 60, L. 1995; amd. Sec. 6, Ch. 264, L. 1995.
Structure Montana Code Annotated
Chapter 5. Enforcement of Support
Part 2. Administrative Enforcement of Support
40-5-203. Child support enforcement services
40-5-204. Cooperation by obligee
40-5-205. Payment of support money collected to department -- notice
40-5-207. Department authorized to enforce maintenance awards
40-5-208. Medical support -- obligation enforcement
40-5-209. Child support guidelines -- periodic review
40-5-210. Standardized fee schedule -- rules
40-5-213. Financial statements by obligor -- penalty
40-5-214. Scale of suggested minimum contributions
40-5-215. through 40-5-220 reserved
40-5-221. Debt to state by obligor -- limitations
40-5-222. Support debt based upon support order -- notice -- contents -- action to collect
40-5-227. Filing and docketing of final orders -- orders effective as district court decrees
40-5-228. through 40-5-230 reserved
40-5-231. Jurisdiction and venue
40-5-232. Establishment of paternity -- notice of parental responsibility -- contents
40-5-235. Effect of order establishing paternity -- birth records -- relief from order
40-5-238. Confidentiality of paternity hearings and records of proceedings
40-5-239. and 40-5-240 reserved
40-5-243. Release of excess to obligor
40-5-247. Warrant for distraint -- effect -- satisfaction of support lien -- redemption
40-5-249. and 40-5-250 reserved
40-5-251. Debt payment schedule
40-5-252. Interest on debts due -- waiver
40-5-253. Administrative findings and order -- administrative remedies -- judicial review
40-5-254. Statutory limitations
40-5-255. Charging off child support debts as uncollectible -- sale of support debts
40-5-256. Employee debtor rights protected -- limitation
40-5-257. Assignment of earnings to be honored -- effect
40-5-258. through 40-5-260 reserved
40-5-261. Procedures for making information available to consumer reporting agencies
40-5-263. Central clearinghouse -- enforcement services -- powers and duties of the department
40-5-264. Cooperative agreements
40-5-265. through 40-5-270 reserved
40-5-271. Registration of support orders
40-5-272. Application for review of child support orders
40-5-273. Notice of review of child support orders -- order for production of information
40-5-277. Administrative review hearing -- final order -- court approval of order
40-5-278. Limited review of support order
40-5-279. through 40-5-289 reserved