---
kind: "section"
citation: "42 C.F.R. § 401.617"
title: "42"
number: "401.617"
heading: "Suspension of collection action."
url: "https://uscodex.org/cfr/42/401.617"
---

# §401.617. Suspension of collection action.

- (a) **General conditions.** CMS may temporarily suspend collection action on a claim if the following general conditions are met—
  - (1) **Amount of future recovery.** CMS determines that future collection action may result in a recovery of an amount sufficient to justify periodic review and action on the claim by CMS during the period of suspension.
  - (2) **Statute of limitations.** CMS determines that—
    - (i) The applicable statute of limitations has been tolled, waived or has started running anew; or
    - (ii) Future collections may be made by CMS through offset despite an applicable statute of limitations.
- (b) **Basis for suspension.** Bases on which CMS may suspend collection action on a particular claim include the following—
  - (1) A debtor cannot be located; or
  - (2) **A debtor—**
    - (i) Owns no substantial equity in property;
    - (ii) Is unable to make payment on CMS's claim or is unable to effect a compromise; and
    - (iii) **Has future prospects that justify retention of the claim.**
- (c) **Locating debtors.** CMS will make every reasonable effort to locate missing debtors sufficiently in advance of the bar of an applicable statute of limitations to permit timely filing of a lawsuit to recover the amount of the claim.
- (d) **Effect of suspension on liquidation of security.** CMS will liquidate security, obtained in partial recovery of a claim, despite a decision under this section to suspend collection action against the debtor for the remainder of the claim.

## Notes

### Source

Source: 48 FR 39064, Aug. 29, 1983, unless otherwise noted.

### Authority

Authority: 42 U.S.C. 1302, 1395hh, 1395w-5, and 1395kk-2.