Termination of Collection Action

Termination of collection action is a decision to cease active collection action on a debt, in accordance with criteria set out in the Federal Claims Collection Standards, because such action is not economically worthwhile or is otherwise inappropriate. This occurs when “it appears [to an agency] that no person liable on the claim has the present or prospective ability to pay a significant amount of the claim or the cost of collecting the claim is likely to be more than the amount recovered.” See 31 U.S.C. § 3711(a)(3).