---
kind: "range"
citation: "5 C.F.R. §§ 845.303–845.305"
title: "5"
from: "845.303"
to: "845.305"
count: 3
url: "https://uscodex.org/cfr/5/845.303..845.305"
---

# §845.303. Equity and good conscience.


Recovery is against equity and good conscience when—

- (a) It would cause financial hardship to the person from whom it is sought;
- (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.**

# §845.304. Financial hardship.


Financial hardship may be deemed to exist in, but not limited to, those situations when the annuitant from whom collection is sought needs substantially all of his or her current income and liquid assets to meet current ordinary and necessary living expenses and liabilities.

- (a) **Considerations.** Some pertinent considerations in determining whether recovery would cause financial hardship are as follows:
  - (1) **The individual's financial ability to pay at the time collection is scheduled to be made.**
  - (2) Income to other family member(s), if such member's ordinary and necessary living expenses are included in expenses reported by the annuitant.
- (b) **Exemptions.** Assets exempt from execution under State law should not be considered in determining an individual's ability to repay the indebtedness. Rather primary emphasis will be placed upon the annuitant's liquid assets and current income in making such determinations.

# §845.305. 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, medical expenses, support expenses for which the annuitant is legally responsible, and other miscellaneous expenses that the individual can establish as being ordinary and necessary.