Clause 5. Deferral of recovery

5

Deferral of recovery

(1)

This clause identifies the circumstances in which MSD may, under regulation 210, defer temporarily the recovery of a debt.

(2)

The first circumstance is where, in the circumstances of the particular case, MSD is satisfied that recovery of the debt would-

(a)

have an adverse effect on any 1 or more of-

(i)

the ability of the debtor to meet his or her needs and the needs of any of his or her dependants; or

(ii)

the ability of the debtor to support him or herself; or

(iii)

the ability of the debtor to obtain or retain employment; or

(iv)

the ability of the debtor to fulfil any obligations that he or she has under the Act; or

(b)

result in undue hardship to the debtor or any of his or her dependants.

(3)

When determining the period of time for which recovery of a debt should be temporarily deferred in the first circumstance, MSD should have regard to the matters set out in paragraphs (a) and (b) of subclause (2).

(4)

The second circumstance is where the debtor has made an application for a review under section 391 of the Act or lodged an appeal under section 397, 398, or 399 of the Act in respect of the debt that has not yet been decided. MSD should defer recovery of the debt in this circumstance until the review or appeal is disposed of by the benefits review committee or (as the case requires) the Appeal Authority.

(5)

If, in respect of a debt of the kind set out in regulation 206(c) or (d) (debts in respect of any advance payment of instalments of benefit or recoverable assistance under any welfare programme), either the first circumstance or the second circumstance applies, in deciding whether to defer recovery of the debt MSD should give consideration to the following matters:

(a)

the relevant circumstance set out in subclause (2) or subclause (4):

(b)

in the case of a debtor who is a beneficiary, the extent to which deferral of recovery would reduce the debtor's access to further advance payments of instalments of benefit or recoverable assistance under any welfare programme where that access is based on the beneficiary's level of debt:

(c)

the age of the debt.