Code of Federal Regulations · Section
§ 422.842 — Liquidation Of Collateral
20 C.F.R. § 422.842
(a) (1) If the debtor fails to pay the debt(s) within a reasonable time after demand and if such action is in the best interests of the United States, we will liquidate security or collateral through the exercise of a power of sale in the security instrument or a non-judicial foreclosure and apply the proceeds to the applicable debt(s).
(2) Collection from other sources, including liquidation of security or collateral, is not a prerequisite to requiring payment by a surety, insurer, or guarantor unless such action is expressly required by statute or contract.
(3) We will give the debtor reasonable notice of the sale and an accounting of any surplus proceeds and will comply with other requirements under law or contract.
(b) Where there is reason to believe that a bankruptcy petition has been filed with respect to a debtor, we will contact the Office of the General Counsel for legal advice concerning the impact of the Bankruptcy Code, particularly with respect to the applicability of the automatic stay, 11 U.S.C. 362, and the procedures for obtaining relief from such stay prior to proceeding under paragraph (a) of this section.
Authorizing Statute
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Automatic stay11 U.S.C. § 362
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Debt Collection Improvement Account31 U.S.C. § 3720C
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Administrative offset31 U.S.C. § 3716
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Dissemination of information regarding identity of delinquent debtors31 U.S.C. § 3720E
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Reduction of tax refund by amount of debt31 U.S.C. § 3720A
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Garnishment31 U.S.C. § 3720D
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Rule making5 U.S.C. § 553
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Commissioner; Deputy Commissioner; other officers42 U.S.C. § 902
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Interest and penalty on claims31 U.S.C. § 3717
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Installment deduction for indebtedness to the United States5 U.S.C. § 5514
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Collection and compromise31 U.S.C. § 3711