OAR 459-005-0620: Uncollectible Debt Owed to PERS

Any debt, including interest, penalties, or any portion of the debt, may be considered to be uncollectible when the debtor has no money or other thing of value owing or held by PERS that has not been credited to the debt, and it is reasonable to conclude, after all reasonable efforts to collect the debt have been made, that one or more of the following is true: (1) The debtor does not and will not for the foreseeable future own or have the right to own assets from which PERS could collect the debt. (2) It is reasonably estimated that the cost of collecting the debt would equal or exceed the amount of the debt. (3) The debtor is deceased, and there are no assets in the debtor’s estate from which PERS could collect the debt. (4) The debtor is a corporation or a limited liability company that is not and for the foreseeable future will not be engaged in any income-producing activity, and there are no assets from which PERS could collect the debt. (5) The debt has previously been discharged in bankruptcy. (6) The debtor’s estate is subject to a pending bankruptcy proceeding in which it is reasonable to conclude that the debt will be discharged and that PERS will receive none or an insubstantial share of the assets of the bankruptcy estate. (7) PERS is and will be for the foreseeable future unable to collect from the debtor or from anyone owing the debtor money or holding assets of or from the debtor. (8) PERS is unable to locate the debtor despite having made reasonable efforts to do so. (9) The debt has been liquidated by reduction to a court judgment, administrative order or distraint warrant, which has subsequently expired.