The Debt Collection Improvement Act of 1996 (DCIA) provides that any non-tax debt or claim owed to the U.S. Government that is 180 days delinquent, with certain exceptions, will be referred to the Department of the Treasury for collection. Debt that is in litigation or foreclosure, with a collection agency or designated federal debt collection center, or that will be disposed of under an asset sales program, is exempt from transfer to the Secretary.
Separately, agencies are required to notify Treasury of all nontax debts that are 120 days delinquent for purposes of administrative offset. There are no exemptions.
Legal Authorities By Program
Statutory Debt Collection Authorities
Regulatory Debt Collection Authorities
Treasury Financial Manual:
Treasury Financial Manual Index
Part 4-Chapter 4000 Debt Management Collection of Delinquent Nontax Debt (T/L 668)
Frequently-Asked Questions
Part 4-Chapter 4100 Debt Management Reports (T/L 635)
Payments Exempt from Offset by Action of the Secretary of the Treasury
31 U.S.C. 3716(c)(3)(B)
Treatise on Federal Nontax Debt Collection Law
Office of Management and Budget (OMB) Circular No. A-129
Policies for Federal Credit Programs and Non-Tax Receivables
(Updated January 2013)