Montana Code Annotated 2023



Part 2. Administrative Enforcement of Support

Charging Off Child Support Debts As Uncollectible -- Sale Of Support Debts

40-5-255. Charging off child support debts as uncollectible -- sale of support debts. (1) Any support debt due the department from an obligor, which debt the department determines uncollectible, may be transferred from accounts receivable to a suspense account and cease to be accounted as an asset. If a warrant for distraint has been filed and the support debt has subsequently been charged off as uncollectible, the department shall issue a release of lien.

(2) At any time after 10 years from the date of termination of the support obligation or after 10 years from entry of a lump-sum judgment or order for support arrears, whichever is later, the department may charge off as uncollectible any support debt upon which the department finds there is no available, practical, or lawful means by which the support debt may be collected. A proceeding or action under the provisions of this part may not be begun after expiration of the 10-year period to institute collection of a support debt. This part may not be construed to render invalid or nonactionable a warrant for distraint issued by the department prior to the expiration of the 10-year period or an assignment of earnings executed prior to the expiration of the 10-year period.

(3) The department may discount and sell to a private collection agency, credit bureau, or other private entity any interest that the state and the department may have in the unpaid balance of the support debt created by 40-5-221 and 53-4-248 or assigned to the department under 53-2-613.

(a) The sale must be by sealed bid to the highest bidder provided that the highest bid is not less than 10% of the value of the support debt subject to the sale.

(b) The sale must be subject to conditions and terms that the department may set out in a sales contract.

(c) The department shall publish notice of the sale in a newspaper having statewide circulation once a week for 4 successive weeks.

(d) Proceeds must be paid into the state treasury to the credit of the child support enforcement division special revenue fund.

History: En. Sec. 27, Ch. 612, L. 1979; amd. Sec. 49, Ch. 439, L. 1981; amd. Sec. 3, Ch. 561, L. 1985; amd. Sec. 25, Ch. 549, L. 1989; amd. Sec. 19, Ch. 631, L. 1993; amd. Sec. 10, Ch. 60, L. 1995; amd. Sec. 6, Ch. 264, L. 1995.