---
kind: "section"
citation: "42 C.F.R. § 401.621"
title: "42"
number: "401.621"
heading: "Termination of collection action."
url: "https://uscodex.org/cfr/42/401.621"
---

# §401.621. Termination of collection action.

- (a) **General factors.** After considering the bases for a decision to terminate collection action under [paragraph (b)](#b) of this section, CMS may further consider factors such as—
  - (1) The age and health of the debtor if the debtor is an individual;
  - (2) Present and potential income of the debtor; and
  - (3) **Whether assets have been concealed or improperly transferred by the debtor.**
- (b) **Basis for termination of collection action.** Bases on which CMS may terminate collection action on a claim include the following—
  - (1) **Inability to collect a substantial amount of the claim.** CMS may terminate collection action if it determines that it is unable to collect, or to enforce collection, of a significant amount of the claim. In making this determination, CMS will consider factors such as—
    - (i) Judicial remedies available;
    - (ii) The debtor's future financial prospects; and
    - (iii) **Exemptions available to the debtor under State or Federal law.**
  - (2) **Inability to locate debtor.** In cases involving missing debtors, CMS may terminate collection action if—
    - (i) There is no security remaining to be liquidated;
    - (ii) The applicable statute of limitations has run; or
    - (iii) The prospects of collecting by offset, whether or not an applicable statute of limitations has run, are considered by CMS to be too remote to justify retention of the claim.
  - (3) **Cost of collection exceeds recovery.** CMS may terminate collection action if it determines that the cost of further collection action will exceed the amount recoverable.
  - (4) **Legal insufficiency.** CMS may terminate collection action if it determines that the claim is legally without merit.
  - (5) **Evidence unavailable.** CMS may terminate collection action if—
    - (i) Efforts to obtain voluntary payment are unsuccessful; and
    - (ii) **Evidence or witnesses necessary to prove the claim are unavailable.**

## 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.