---
kind: "range"
citation: "31 C.F.R. §§ 29.523–29.525"
title: "31"
from: "29.523"
to: "29.525"
count: 3
url: "https://uscodex.org/cfr/31/29.523..29.525"
---

# §29.523. Equity and good conscience.


Recovery is against equity and good conscience when there is substantial evidence that—

- (a) It would cause financial hardship to the person from whom it is sought no matter what the amount and length of the proposed installment;
- (b) The recipient of the overpayment can show (regardless of his or her financial circumstances) that due to the notice that such payment would be made or because of the incorrect payment he or she either has relinquished a valuable right or has changed positions for the worse; or
- (c) **Recovery would be unconscionable under the circumstances.**

# §29.524. Financial hardship.


Financial hardship may be deemed to exist when the debtor needs substantially all of his or her current and anticipated income and liquid assets to meet current and anticipated ordinary and necessary living expenses during the projected period of collection. Financial hardship will not be found to exist when the debtor merely establishes that the repayment causes a financial burden, i.e., when it is inconvenient to repay the debt. If there are anticipated changes in income or expenses that would allow for the recovery of the overpayment at a later date, the Department may suspend collection action until a future date.

- (a) **Considerations.** Pertinent considerations in determining whether recovery would cause financial hardship include the following:
  - (1) The debtor's financial ability to pay at the time collection is scheduled to be made, and
  - (2) Income to other family member(s), if such member's ordinary and necessary living expenses are included in expenses reported by the debtor.

# §29.525. Ordinary and necessary living expenses.


An individual's ordinary and necessary living expenses include rent, mortgage payments, utilities, maintenance, transportation, food, clothing, insurance (life, health, and accident), taxes, installment payments for which the individual is already liable, medical expenses, support expenses for which the individual is legally responsible, and other miscellaneous expenses that the individual can establish as being ordinary and necessary.