Debt at cancellation
When a client's benefit is cancelled the balance of any debt they have been repaying is transferred to the TRACE system and becomes non-current debt administered by the Client Support - Debt Management.
Case managers are responsible for arranging repayments at cancellation
Note clients advising to stop their payment through MyMSD will provide debt repayment information as part of their submitted form.
New debt established at cancellation
The cancellation of a benefit may create a new debt for the client. For example the benefit is cancelled from a date in the past. You may receive a SWIFTT warning that a backdated review SBDR is required - this must be done to ensure the debt is created for the correct amount.
New debt established on or after 26 September 2002
New debt established on or after 26/09/2002 must be checked against the debt write-off criteria to decide if the debt or part of the debt is recoverable.
For more information see:
